Friday, June 29, 2018

Greg Mankiw on the Poverty Trap

Mankiw's graph shows that as you earn more income (plotted on the horizontal axis), the amount of money you receive (income - taxes + subsidies) is does not increase, at least for lower-income earners.  Until your earned income hits about $40,000, the extra money you receive from earning more is near zero.

No comments:

Post a Comment