Chapter 7 Read & Respond (no reply)

1. How does the change in the marriage rate for people with low levels of education relative to people with high levels of education affect measured economic growth for the middle class?  Marriage rates have dropped more for less educated people who usually earn less money.  this makes more single income households which can make middle class income look like it is growing slowly.
2. If the poverty rate didn't change very much when there was economic growth in the recent past, does that mean it will not change much if there is growth in the future?  No.  The Poverty rate may not have changed because the family structure was also changing at the same time.
3. Why does Roberts raise the possibility that lower marriage rates might be caused by the poor performance of the economy?  He says this because the economic problems might make it harder for people to get married or stay married.  If this is right, then the economy could also be affecting typical family structure.
4. If family structure had stayed constant, poverty would have fallen by 25% in the example in the video. But it actually fell by only 4%. Is one of these measure right and the other wrong? How would you decide?  Neither are fully wrong because they show different things.  You would decide by looking at whether you want to measure the real poverty rate or the effect of economic growth without changes on family structure.

Do the Rich Get All The Gains?

1. How can we ensure that the same people are being followed over time to prevent distorted data? Panel data
2. Why isn’t panel data used more frequently to report income and mobility statistics? it is harder to collect because it takes many years.

Let's Party Like It's 1973!

1. Would you take the deal and go back to 1973 if it meant you could pay 1973 prices while only enjoying 1973 goods and services? Probobly not because modern technology wouldnt be as good.  life today is more convinient
2. Why might the poorest Americans prefer living in 1973. Do you think many would? Why or why not? some would prefer it because of cheaper housing schooling and healthcare, but many may stay away because of the new and modern technology we have today that makes life easier.
3. What are some examples of improvements to quality of life that haven’t been measured well by prices alone?  phones, internet, gps, new medical technology
4. Are there any goods or services where you think quality has gone down, the opposite effect discussed in the video? Do you think this problem is common or rare? i think it is more common to see technological advancements than seeing things go down in quality.  this is very rare.
5. Do you think people in the past were more or less happy than people today? Would most people in 1973 be excited or sad to live in today’s world with today’s goods and services? people in the past have been happy in different ways but many would likely be more happy because of today's technology and medical advances.

Challenge of Inequality

1. What are the realities versus the myths of poverty? myth= rich are getting richer which means the poor are getting poorer.  reality= poor people are actually making improvements.
2. How can we understand the root causes of poverty? poverty is influenced by many factors and not just one cause. looking de eper can help to show why peole to struggle to move up in the economy.  look at factors like education, job, skills, family strucure and economic policies.