In conversations about income mobility—a staple of the 2024 election—there is no consensus about the main barriers to mobility. There is a persistent confusion among academics and policymakers about intertwining income mobility, poverty, and income inequality.
There is a correlation between income mobility and inequality, but it may well be that there are barriers and variables affecting both at the same time. There has been no causation demonstrated in the economic literature one way or the other.
However, if there is a consensus (albeit misguided), in our current academic and policy conversations, it is that the main way we should combat inequality and improve mobility are either through taxing the rich or increasing transfers to the poor and tweaking the welfare system.
Continue reading at Southern California News Group.
Gonzalo Schwarz is President and CEO at the Archbridge Institute. Gonzalo focuses on researching and writing about the American Dream, social mobility, the economics of human flourishing, economic development, and entrepreneurship. He is the author of the institute’s "American Dream Snapshot” and editor of two publications focused on social mobility in Europe and Latin America. Gonzalo has an M.A. in economics from George Mason University and a B.A. in economics from the Catholic University of Bolivia. You can follow his Substack, "Living the Dream," where he writes about the American Dream.
Economics of Flourishing
In conversations about income mobility—a staple of the 2024 election—there is no consensus about the main barriers to mobility. There is a persistent confusion among academics and policymakers about intertwining income mobility, poverty, and income inequality.
There is a correlation between income mobility and inequality, but it may well be that there are barriers and variables affecting both at the same time. There has been no causation demonstrated in the economic literature one way or the other.
However, if there is a consensus (albeit misguided), in our current academic and policy conversations, it is that the main way we should combat inequality and improve mobility are either through taxing the rich or increasing transfers to the poor and tweaking the welfare system.
Continue reading at Southern California News Group.
Gonzalo Schwarz
Gonzalo Schwarz is President and CEO at the Archbridge Institute. Gonzalo focuses on researching and writing about the American Dream, social mobility, the economics of human flourishing, economic development, and entrepreneurship. He is the author of the institute’s "American Dream Snapshot” and editor of two publications focused on social mobility in Europe and Latin America. Gonzalo has an M.A. in economics from George Mason University and a B.A. in economics from the Catholic University of Bolivia. You can follow his Substack, "Living the Dream," where he writes about the American Dream.
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