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What Are Your Odds of Making It to the 1%? – Article by Chelsea Follett

What Are Your Odds of Making It to the 1%? – Article by Chelsea Follett

The New Renaissance HatChelsea Follett
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They’re better than you think

Your odds of “making it to the top” might be better than you think, although it’s tough to stay on top once you get there.

According to research from Cornell University, over 50 percent of Americans find themselves among the top 10 percent of income-earners for at least one year during their working lives. Over 11 percent of Americans will be counted among the top 1 percent of income-earners (i.e., people making at minimum $332,000) for at least one year.

How is this possible? Simple: the rate of turnover in these groups is extremely high.

Just how high? Some 94 percent of Americans who reach “top 1 percent” income status will enjoy it for only a single year. Approximately 99 percent will lose their “top 1 percent” status within a decade.

Now consider the top 400 U.S. income-earners — a far more exclusive club than the top 1 percent. Between 1992 and 2013, 72 percent of the top 400 retained that title for no more than a year. Over 97 percent retained it for no more than a decade.

HumanProgress.org advisory board member Mark Perry put it well in his recent blog post on this subject:

Whenever we hear commentary about the top or bottom income quintiles, or the top or bottom X% of Americans by income (or the Top 400 taxpayers), a common assumption is that those are static, closed, private clubs with very little dynamic turnover. …

But economic reality is very different — people move up and down the income quintiles and percentile groups throughout their careers and lives.

What if we look at economic mobility in terms of accumulated wealth, instead of just annual income (as the latter tends to fluctuate more)?

The Forbes 400 lists the wealthiest Americans by total estimated net worth, regardless of their income during any given year. Over 71 percent of Forbes 400 listees — and their heirs — lost their top 400 status between 1982 and 2014.

heirsSo, the next time you find yourself discussing the very richest Americans, whether by wealth or income, keep in mind the extraordinarily high rate of turnover among them.

And even if you never become one of the 11.1 percent of Americans who fleetingly find themselves in the “top 1 percent” of US income-earners, you’re still quite possibly part of the global top 1 percent.

Cross-posted from HumanProgress.org.

Chelsea Follett (Chelsea German) works at the Cato Institute as a Researcher and Managing Editor of HumanProgress.org.

This article was published by The Foundation for Economic Education and may be freely distributed, subject to a Creative Commons Attribution 4.0 International License, which requires that credit be given to the author.

Good News, Bernie Sanders: Average Workweeks Are Getting Shorter – Article by Chelsea Follett

Good News, Bernie Sanders: Average Workweeks Are Getting Shorter – Article by Chelsea Follett

The New Renaissance HatChelsea Follett
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Capitalism is letting people choose more leisure

Senator Bernie Sanders recently tweeted the following:

sanders.tweetFortunately, the gruelingly long workweek described by Sanders is not the norm. In fact, leisure time has been on the rise. In 1950, an average U.S. worker worked 1,984 hours a year, or about 38 hours a week. In 2015, an average American worker worked 1,767 hours, or about 34 hours a week.

workhours

That means that the average U.S. worker had 217 more hours for leisure or other pursuits in 2015 than in 1950. That is about 9 days of extra time.

The 50-hour workweek described by Sanders is more common in China, where the average worker worked 2,432 hours in 2015, or around 47 hours a week.

This post first appeared at HumanProgress.org.
Compare other countries over time with their interactive dataset.

Chelsea Follett (Chelsea German) works at the Cato Institute as a Researcher and Managing Editor of HumanProgress.org.

This article was published by The Foundation for Economic Education and may be freely distributed, subject to a Creative Commons Attribution 4.0 International License, which requires that credit be given to the author.

All Food Is Genetically Modified. Now We’re Just Better at It. – Article by Chelsea Follett

All Food Is Genetically Modified. Now We’re Just Better at It. – Article by Chelsea Follett

The New Renaissance Hat
Chelsea Follett
September 11, 2015
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There is huge potential for progress in biotech.

A recent article in Business Insider showing what the ancestors of modern fruits and vegetables looked like painted a bleak picture. A carrot was indistinguishable from any skinny brown root yanked up from the earth at random. Corn looked nearly as thin and insubstantial as a blade of grass. Peaches were once tiny berries with more pit than flesh. Bananas were the least recognizable of all, lacking the best features associated with their modern counterparts: the convenient peel and the seedless interior. How did these barely edible plants transform into the appetizing fruits and vegetables we know today? The answer is human ingenuity and millennia of genetic modification.

Carrot_Comparison(Photo Credit: Genetic Literacy Project and Shutterstock via Business Insider).

Humanity is continuously innovating to produce more food with less land, less water, and fewer emissions. As a result, food is not only more plentiful, but it is also coming down in price.

Tech_Food_Cheaper

The pace of technological advancement can be, if you will pardon the pun, difficult to digest. Lab-grown meat created without the need to kill an animal is already a reality. The first lab-grown burger debuted in 2013, costing over $300,000, but the price of a lab-grown burger patty has since plummeted, and the innovation’s creator “expects to be able to produce the patties on a large enough scale to sell them for under $10 a piece in a matter of five years.”

People who eschew meat are a growing demographic, and lab-grown meat is great news for those who avoid meat solely for ethical reasons. It currently takes more land, energy, and water to produce a pound of beef than it does to produce equivalent calories in the form of chickens, but also grains. So, cultured meat could also lead to huge gains in food production efficiency.

Another beautiful example of human progress in the realm of food is golden rice. The World Health Organization estimates that between 250,000 and 500,000 children become blind every year as a result of vitamin A deficiency, and about half of them die within a year of losing their sight. Golden rice, largely a brainchild of the private Rockefeller Foundation, is genetically engineered to produce beta carotene, which the human body can convert into vitamin A. Golden rice holds the potential to protect hundreds of thousands of children in the developing world from vitamin A deficiency, preserving their sight and, in many cases, saving their lives.

Humans have been modifying food for millennia, and today we’re modifying it in many exciting ways, from cultured meat to golden rice. Sadly, it has become fashionable to fear modern genetically-modified organisms (GMOs), even though scientists overwhelmingly agree that GMOs are safe.

Anti-GMO hysteria motivated the popular restaurant chain Chipotle to proclaim itself “GMO-free” earlier this year (a dubious claim), prompted a political movement calling for the labeling of GM foods (a needless regulation implying to consumers that GMOs are hazardous), and even fueled opposition to golden rice. HumanProgress.org advisory board member Matt Ridley summarized the problem in his recent Wall Street Journal op-ed:

After 20 years and billions of meals, there is still no evidence that [GMOs] harm human health, and ample evidence of their environmental and humanitarian benefits. Vitamin-enhanced GM “golden rice” has been ready to save lives for years, but opposed at every step by Greenpeace. Bangladeshi eggplant growers spray their crops with insecticides up to 140 times in a season, risking their own health, because the insect-resistant GMO version of the plant is fiercely opposed by environmentalists. Opposition to GMOs has certainly cost lives.

Besides, what did GMOs replace? Before transgenic crop improvement was invented, the main way to breed new varieties was “mutation breeding”: to scramble a plant’s DNA randomly, using gamma rays or chemical mutagens, in the hope that some of the monsters thus produced would have better yields or novel characteristics. Golden Promise barley, for example, a favorite of organic brewers, was produced this way. This method still faces no special regulation, whereas precise transfer of single well known genes, which could not possibly be less safe, does.

Fortunately, while regulations motivated by anti-GMO sentiment may slow down progress, they probably cannot do so indefinitely. For those who wish to avoid modern GM foods, the market will always provide more traditional alternatives, and for the rest of us, human ingenuity will likely continue to increase agricultural efficiency and improve food in ways we cannot even imagine. Learn more about the progress we have already made by visiting HumanProgress.org and selecting the “Food” category under “Browse Data.”

Chelsea Follett (Chelsea German) works at the Cato Institute as a Researcher and Managing Editor of HumanProgress.org.
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