[EconProf]

Permit me to elaborate. A person with a high income but zero net worth–let’s say a hot-shot salesman with a few years of good income, but lots of credit card debt could easily get a loan. Someone with the same credit score, lower income but good net worth from a history of spending less than their income for many years would be less likely to get a bank loan.
Yet the salesman’s income could drop for a variety of reasons while the frugal guy could handle adversity better–has liquidity, spends modestly, etc. Where’s the justice?

[EconProf]

Permit me to elaborate. A person with a high income but zero net worth–let’s say a hot-shot salesman with a few years of good income, but lots of credit card debt could easily get a loan. Someone with the same credit score, lower income but good net worth from a history of spending less than their income for many years would be less likely to get a bank loan.
Yet the salesman’s income could drop for a variety of reasons while the frugal guy could handle adversity better–has liquidity, spends modestly, etc. Where’s the justice?

[EconProf]

Permit me to elaborate. A person with a high income but zero net worth–let’s say a hot-shot salesman with a few years of good income, but lots of credit card debt could easily get a loan. Someone with the same credit score, lower income but good net worth from a history of spending less than their income for many years would be less likely to get a bank loan.
Yet the salesman’s income could drop for a variety of reasons while the frugal guy could handle adversity better–has liquidity, spends modestly, etc. Where’s the justice?

[EconProf]

Permit me to elaborate. A person with a high income but zero net worth–let’s say a hot-shot salesman with a few years of good income, but lots of credit card debt could easily get a loan. Someone with the same credit score, lower income but good net worth from a history of spending less than their income for many years would be less likely to get a bank loan.
Yet the salesman’s income could drop for a variety of reasons while the frugal guy could handle adversity better–has liquidity, spends modestly, etc. Where’s the justice?

[EconProf]

I’ve never understood why banks put so much stress on current income, and so little on net worth. It takes discipline to save and accumulate assets, which ought to be the best indicator of default probability.
I’d suggest this couple keep on looking to refinance. Lenders cannot all be that stupid.

[EconProf]

I’ve never understood why banks put so much stress on current income, and so little on net worth. It takes discipline to save and accumulate assets, which ought to be the best indicator of default probability.
I’d suggest this couple keep on looking to refinance. Lenders cannot all be that stupid.

[EconProf]

I’ve never understood why banks put so much stress on current income, and so little on net worth. It takes discipline to save and accumulate assets, which ought to be the best indicator of default probability.
I’d suggest this couple keep on looking to refinance. Lenders cannot all be that stupid.

[EconProf]

I’ve never understood why banks put so much stress on current income, and so little on net worth. It takes discipline to save and accumulate assets, which ought to be the best indicator of default probability.
I’d suggest this couple keep on looking to refinance. Lenders cannot all be that stupid.

[EconProf]

I’ve never understood why banks put so much stress on current income, and so little on net worth. It takes discipline to save and accumulate assets, which ought to be the best indicator of default probability.
I’d suggest this couple keep on looking to refinance. Lenders cannot all be that stupid.

[EconProf]

A growing cohort of economists doing studies of third world development are coming to the conclusion that foreign aid does more harm than good. It entrenches dictatorships and bureaucrats, stifles self-help, undermines naturally occurring markets, and has a clear empirical record of failure. A recent study comparing African countries who got a lot of aid over the years to those who got little or none, found the latter group did far better.
Micro loans foster capitalism from the ground up. The entrepreneurs who take advantage of it, usually women, have to show a plan, execute it, and suffer peer pressure if they don’t repay. A great way to fight poverty.

[EconProf]

A growing cohort of economists doing studies of third world development are coming to the conclusion that foreign aid does more harm than good. It entrenches dictatorships and bureaucrats, stifles self-help, undermines naturally occurring markets, and has a clear empirical record of failure. A recent study comparing African countries who got a lot of aid over the years to those who got little or none, found the latter group did far better.
Micro loans foster capitalism from the ground up. The entrepreneurs who take advantage of it, usually women, have to show a plan, execute it, and suffer peer pressure if they don’t repay. A great way to fight poverty.

[EconProf]

A growing cohort of economists doing studies of third world development are coming to the conclusion that foreign aid does more harm than good. It entrenches dictatorships and bureaucrats, stifles self-help, undermines naturally occurring markets, and has a clear empirical record of failure. A recent study comparing African countries who got a lot of aid over the years to those who got little or none, found the latter group did far better.
Micro loans foster capitalism from the ground up. The entrepreneurs who take advantage of it, usually women, have to show a plan, execute it, and suffer peer pressure if they don’t repay. A great way to fight poverty.

[EconProf]

A growing cohort of economists doing studies of third world development are coming to the conclusion that foreign aid does more harm than good. It entrenches dictatorships and bureaucrats, stifles self-help, undermines naturally occurring markets, and has a clear empirical record of failure. A recent study comparing African countries who got a lot of aid over the years to those who got little or none, found the latter group did far better.
Micro loans foster capitalism from the ground up. The entrepreneurs who take advantage of it, usually women, have to show a plan, execute it, and suffer peer pressure if they don’t repay. A great way to fight poverty.

[EconProf]

A growing cohort of economists doing studies of third world development are coming to the conclusion that foreign aid does more harm than good. It entrenches dictatorships and bureaucrats, stifles self-help, undermines naturally occurring markets, and has a clear empirical record of failure. A recent study comparing African countries who got a lot of aid over the years to those who got little or none, found the latter group did far better.
Micro loans foster capitalism from the ground up. The entrepreneurs who take advantage of it, usually women, have to show a plan, execute it, and suffer peer pressure if they don’t repay. A great way to fight poverty.

[EconProf]

Good overview of California’s problems, from a British perspective.
Our politics are indeed polarized, as there is a looney left and looney right that are far from agreeing on anything.
What we can conclude, however, is that during this decline, the left has been in charge. They own the legislature, the media, the universities, the public employee unions, and defacto, the governor’s office.
All the puny Republicans have is Proposition 13 and the two-thirds requirement for a tax increase, both now under assault. Given the outflow of middle-class taxpayers and employers, there is little prospect for a change in our politics.

[Author]

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