April 2008

Neighborhoods That Don't Work

Unemployment is becoming more concentrated.  Neighborhoods that had high unemployment in 1980 had even higher unemployment 20 years later.  What are the possible reasons—and solutions—for this trend?

Which Came First—Democracy or Growth?

Most economists agree that economic freedom promotes growth, but fewer agree that more political freedom improves economic performance as well.  Chile of the 1970s and 1980s and China today are just two autocracies with strong economies.

Extra Credit: The Rise of Short-term Liabilities

Not only are more American families in debt, but the median value of the debt more than doubled between 1989 and 2004.  Credit cards and payday loans are two of the favorite tools for digging the hole deeper.

The Fed and Consumer Protection

The Federal Reserve plays a key role in protecting consumers when they seek financial services. That role revolves around four pillars: rulemaking, enforcement, community affairs and consumer education.