For my paper I am going to analyze what male income can tell you about female income, and how they are correlated. I took data from the US census from the years 1953 to 2011. It is important to note that the income gap has decreased over the years. When I used male median income as my Y variable I then used female median income as my X1 variable. This shows us how male median income can help us predict what female median income will be. My R squared variable for this regression is .9823, this means that 98.23 percent of the variance in Y is explained by the variance in X. In other words one should be able to predict female income using male income. The coefficient for this regression is .6514587, this coefficient tells us that about .65 of male median income equals the median female income. One way I could have made this regression better was by using real income instead of nominal income because the data would have been more realistic using real income.
Why do drug dealers live with their moms? This was the question posed Levitt and Dubner. Sudhir Venkatesh was a university student who went to give a survey to blacks in Chicago’s poorest black neighborhoods. The first question is “how do you feel about being black and being poor?” He walks into a common stairwell where some gang members hang out and is immediately questioned by some of the gangsters. The leader of the gang confronts Venkatesh and eventually lets him hang out with the gang while he explains the inner workings of the crack business. Basically as J.T, the leader, explains it people get into crack because it is sometimes the only thing they can do, or they think they can do. Crack dealers live with their moms because they do not make enough money to not live with their moms. The bottom wrung of the business of dealing cocaine are the foot soldiers. The foot soldiers are the people out their dealing the crack. They only make 3.30 an hour in J.T.’s gang the black disciples. They often supplement their crack dealing with a minimum wage job at a place like Mcdonalds. The reason they do this is because they have a hope of eventually reaching J.T.’s position at the helm. J.T. makes over 100,000 per year, plus money he takes off the top. Statistics are important to this story because they show how little money drug dealers truly make.
My concept of a poverty trap did not really change, because I really did not know what it was, although I might have been able to infer what it is. After reading both the book and the article, a poverty trap is a position a person of lesser economic standing could potentially find themselves in. In Poor Economics they define it as the poor getting poorer and the rich getting richer. In other words, people need a certain amount of calories per day to even function, and if they do not get that specified amount of calories they will not be able to complete physical labor at peak performance. In turn this will cause them to earn less money. I think Poverty traps definitely exist but they are avoidable. They are avoidable because if the impoverished person were to truly focus on getting a healthy amount of calories per day then they can, however according to the book people would rather have better tasting food instead of focusing on increasing their calorie intake. The Slate article explains poverty traps in a different way, they claim that a person may not make bad financial decisions normally but when they are time starved they rush to meet dead lines and end up making bad financial decisions. I would like to see real world statistics that back up the claims made in the Slate article, I want to know if it’s true that bad financial decisions are caused by living paycheck to paycheck, or could it perhaps be that financial education plays a role in the bad decisions made?
A blog is a public journal a person or persons keeps in order too update readers on a specific topic. It differs from other forms of writing because it is generally an informal way of communicating with readers. blogs are constantly being updated, and the owner of a blog can update readers on news almost as soon as it happens, instead of waiting for the next issue to come out. Readers can comment in blogs comment sections making communication between readers and writers very strong.
-This Wall Street Journal Blog is updating their site with new blogs at almost every hour, they set up their blog in a way where the reader can choose to read from the most recent post, which are listed chronologically. They can also choose to read from a list of the most read or most commented about page. This blog is a very respected and reputable blog, I find this blog interesting because of the vast mount of articles one has to choose from on economics stories from around the globe.
The Economist is updating their website with new blog posts constantly, the most recent blog posts are listed fo the reader to choose from. Whats different about this blog from others is the broad array of subjects one can choose from.One of the most recent posts on the website, “football wealth” was a rather interesting article I choose to read.
-I found this blog through the Wall Street Journal blog, it comes as a very highly recommended blog. This blog mainly focuses on US economic developments. They are constantly updating their blog throughout the day. I found this blog interesting simply because it was recommended to me through The Wall Street Journal blog.