Wealth and Income Inequality: Only a Weak Correlation?

Income refers to what is received in a certain period of time, which is why we refer to “annual income” or “weekly paycheck.” Wealth refers to the total that has been accumulated over time, which is why we refer to a “retirement account.” It feels as if there should be an intuitive connection between them: … Continue reading Wealth and Income Inequality: Only a Weak Correlation?

Evidence on Declining Intergenerational Mobility in the United States

If the US economy had considerable intergenerational mobility–that is, if the children growing up in lower-income households had a reasonably good chance of ending up as adults in higher-income households, and conversely the children growing up in higher-income households had a reasonably good chance of ending up as adults in lower-income households–then I would be … Continue reading Evidence on Declining Intergenerational Mobility in the United States

The Divergence in Firm Productivity Within the Same Sector: McKinsey Weighs In

One might expect that certain sectors of the economy will have faster productivity growth than others: for example, productivity seems likely to grow faster for semiconductor manufacturers than for a gas station. But one striking change both in the US economy and around the world in the last couple of decades is that looking at … Continue reading The Divergence in Firm Productivity Within the Same Sector: McKinsey Weighs In

When New Immigrants First Go to an American Supermarket

Writer and Poet Roya Hakakian arrived in the United States from Iran in 1985. Her most recent book is A Beginner’s Guide to America: For the Immigrant and the Curious (2021). The most recent issue of Capitalism and Society publishes a short excerpt from the book titled “When New Immigrants First Go to an American … Continue reading When New Immigrants First Go to an American Supermarket