Two economists are walking down the street. One sees a $20 bill lying on the sidewalk and says, “Look at that $20 bill!” The second economist responds, “Nah, that’s not a $20 bill. If it was, someone would have picked it up already.”
How much does a CEO make compared to the average worker? If you’re like most Americans (many economists included), you probably have an estimate in your head that roughly translates as “too much.” Pressed for a number, you might come up with a figure around 30 to 1.
Picture yourself on a beach. You are basking in the hot sun, feeling incredibly thirsty. Fortunately, there’s a bar at the resort where you’re staying. It’s pricey, but it’s just a few steps away. How much are you willing to pay for a cold beer?
It’s well documented that the consequences of childhood poverty are immediate and long-lasting. By their first day in school, children in poverty score worse than their middle and upper class peers on nearly every developmental measure from language use to attention skills.