University Economic Diversity

 This article is one of the most fascinating things on income inequality for a few reasons:

• It is a new plan on how to increase economic diversity in a major univeristy
• It references another study that indicates how application fees can keep lower-income students from applying to certain schools
• It recognizes that even though Chicago has more resources than other top universities, they seem to be lacking in categories that help out low-income families

The plan includes increasing simplicity for financial aid applications and waiving application fees.

Discussion ideas:

• We know that this plan is a step in the right direction, but is it enough to increase economic diversity in a high level institution?
• Is the reason there is so little economic diversity related to the income inequality/SAT score study that was posted by the WSJ? 
• What other steps can University of Chicago do in order to raise diversity?
• Do you see other universities imposing a similar policy/plan?

http://www.nytimes.com/2014/10/02/upshot/the-university-of-chicago-tries-to-catch-up-on-economic-diversity.html?_r=0&abt=0002&abg=1

Income Inequality and SAT Scores

So towards the end of class last night, we were discussing how investments in higher education can reduce inequality. I was reading this article last night after class and had a different idea. Maybe reducing inequality will create higher college graduation rates and increase the skilled labor force.

This article shows the correlation between wealth/income and SAT scores. Wealth is often associated with high education. Parents with higher education want the same for their children.

Do you think that parental income for the most part shows destiny of their children? Or do you think that there is still room for upward social mobility from the middle-class upwards?


http://blogs.wsj.com/economics/2014/10/07/sat-scores-and-income-inequality-how-wealthier-kids-rank-higher/?KEYWORDS=income+inequality

Classic case of monopsony

 Apple can dictate terms to suppliers.....and does.



GT Advanced Bankruptcy Offers Warning To Apple Suppliers - Business Insider

Wal-Mart to end health insurance for some part time workers

With Wal-Mart cutting health insurance on some part time workers (fewer than 30 hrs/wk), about 30,000 will consequently lose health benefits.  These changes are coming as the company plans to incur an additional $500M in health-care costs this year.

Is this a negative result of the ACA?  Why would some people say that "Obamacare is to blame here?" Who is to blame here?

http://online.wsj.com/articles/wal-mart-to-end-health-insurance-for-some-part-time-employees-1412694790?mod=WSJ_hp_LEFTTopStories

Income inequality and generational inequality in Hong Kong

Hong Kong's unprecedented student-led democracy rallies have highlighted
a stark divide between a disenfranchised younger generation who say
they have little to lose, and an older guard who favour pragmatism over
protest.

Read more: http://www.businessinsider.com/afp-umbrella-generation-hong-kongs-despairing-youth-split-with-old-guard-2014-10#ixzz3FSK5KcIX

Our Invisible Rich - NYTimes.com

So how rich are the 1% and does it matter?



Our Invisible Rich - NYTimes.com

Minimum Wage Politics

Obama is calling on congress to increase the federal minimum wage by 40%, from $7.25/hr. to $10.10/hr.  While this sounds nice, this would also reduce job opportunities (up to 500,000 jobs) for those who need them most.  This WSJ article uses a restaurant as an example to prove how this massive increase is not a good idea, stating that while the feds can mandate a higher wage, some jobs just don't produce enough economic value to bear the increase.  Thus, the article suggests that a better option may be to encourage the private-sector to create more middle-income jobs.  The article also use geography as an argument, stating that states and cities should be able to adjust the minimum wage based on regional economic conditions or local needs.  Do you agree with this article or do you think Obama's plan has greater intentions?

http://online.wsj.com/articles/andy-puzder-minimum-wage-maximum-politics-1412543682?mod=trending_now_5