Economics

Income inequality, whether measured before or after taxes has been rising over the last 40 years in the U.S. as shown below. The wealthiest 1 percent have seen their share of income increase to 21 percent pretax and 16 percent post-tax. Europe has also seen an increase in inequality however, the increase is less, and income inequality remains way below U.S. levels. Traditional explanations have suggested that Europe redistributes a greater share of income to the poorest citizens. However, a new paper by economists Blanchet, Chancel, and Gethin (https://www.aeaweb.org/articles?id=10.1257/app.20200703) turns

“Father Christmas, give us the money Don’t mess around with those silly toys” The Kinks, Father Christmas At this time of gift giving, it is worth considering whether the exchange of presents is efficient. Well at least to an economist it is! Famously, if only in economic circles, Joel Waldfogel in 1993 suggested gift giving was inefficient because it destroyed about 10 percent to a third of the value of the gift. Think of the aunt or uncle that gave you that wonderful (read terrible) sweater last year. They bought

Universities and K-12 schools are in the business of human capital development. Human capital is education, training, and other forms of learning. Human capital is seen as an investment, just like physical capital, where the costs are paid upfront and the returns are received later. A recent paper by David Deming in the Journal of Economic Perspectives reviews our knowledge of human capital. An extra year of schooling increases earnings by about 10 percent. Given that the share of the world’s population that has at least some secondary school education

For the second year in a row, several downtown businesses are collaborating to bring their customers a unique shopping experience. Downtown Soul City, a Facebook page, has announced its second annual Small Business Saturday Crawl, which will be held on Nov. 26 beginning at 10 a.m. at Augusta & Co., located at 1010 Broad St. Many businesses, including The Book Tavern, Fetch 501, Grantski Records, and Tiffinie Bleu Bridal Boutique, will participate in this year’s event. Sponsors include Kruhu and Mod Ink. Each of the first 200 shoppers will receive

As Thanksgiving and Christmas draw near, many people think about making charitable donations – for both altruistic and tax reasons. For people who don’t take the standard deduction on the 10-40 form but itemize instead, items like donations to charities can help reduce the amount of money you owe to the government. So, if you’re looking to shave a little off the amount of tax the IRS will collect, there are a few important things to keep in mind. Make a qualified gift. Make sure the organization you’re giving to

Americans drawing money from Social Security received some good news for 2023 with a cost-of-living adjustment (COLA) designed to keep up with inflation. The Social Security Administration (SAA) announced last month that it would implement an increase in benefits of 8.7 percent. The new rate will go into effect in January. For many recipients, this will amount to a monthly addition of $140-150. The SAA distributes funds to retired senior citizens, as well as to those who are disabled and to widows, widowers, and children of deceased workers. The 8.7

Employment in the Augusta Metropolitan Statistical Area inched up by 200 jobs in September to stand at 244,400, but employment locally remains below pre-pandemic levels. With little change in total employment, it is not surprising that there was little change in employment in many industries. Industries seeing a decline in employment include leisure and hospitality with a decline of 600 jobs and professional and business services falling by 1,325. There was an improvement in other labor market indicators with average weekly earnings increasing at 8.5 percent on an annual basis

  Dr. Rick Franza, Dean of the Hull College of Business, discusses a different, timely business topic each Monday in this column. This week, he talks about the impact of inflation on nonprofit organizations. The interview has been edited for clarity and impact. ABD: With inflation still at a 40-year high, many companies are facing increased costs that will probably be passed on to customers through higher prices. But what is the impact of inflation on nonprofits that rely on donations and grants? Rick: It’s a double whammy for them.