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Economy

Forget The Wealth Effect: It’s Time to Focus on The Income Effect to Understand the Sluggish Economy

October 1, 2013

by Peter W. Atwater

The “wealth effect” concept is remarkably simple: spending increases (decreases) as perceived wealth increases (decreases). When people perceive themselves to be richer, they spend more.

With the prices of stocks and bonds near all-time highs and home prices on the rebound, consumer spending should be on a tear. But it’s not -- much to the consternation of many economists, particularly those at the Federal Reserve. As a result, many believe the wealth effect is somehow broken.

How Not to Help the Poor: The Lesson of Soaring College Prices

  • By
  • Joshua Freedman,
  • New America Foundation
July 10, 2013 |

D.C. Council Boosts Social Services Spending by $50 Million

  • By
  • Brigid Schulte,
  • New America Foundation
  • and Tara Bahrampour, The Washington Post
June 28, 2013 |

Asset Building News Week, May 27-31

May 31, 2013
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The Asset Building News Week is a weekly Friday feature on The Ladder, the Asset Building Program blog, designed to help readers keep up with news and developments in the asset building field. This week's topics include the economy, inequality, government assistance, and financial services.

America Can Help Fix the World by Fixing Itself

May 29, 2013

By Jay Pelosky

This op-ed originally appeared in Reuters and is based on the recent World Economic Roundtable Paper, "Building a Bridge to a Tri-Polar World Economy: An American Growth Strategy."

The Next Social Contract: An American Agenda for Reform

  • By
  • Michael Lind,
  • New America Foundation
June 10, 2013

The American social contract is in crisis. Even before the Great Recession exposed its inadequacy, it was clear that the existing American social contract — the system of policies and institutions designed to provide adequate incomes and economic security for all Americans — needed to be reformed to meet the challenges of the twenty-first century. What is needed is not mere incremental tinkering, but rather rethinking and reconstruction. Policies that have worked should be expanded, while others that have failed should be replaced.

TESTIMONY: After the Withdrawal

March 21, 2013

This past Saturday, March 16, 2013 marked an extraordinary moment in Pakistan’s history, as this is the first time that a civilian government has served its entire five-year term (from 2008 to 2013). And, for the first time in its history, the Pakistani military appears both unwilling and unable to mount a coup against any civilian government. The military has mounted four coups since Pakistan’s independence in 1947.

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