A roundup of economic news from around the Web.
–Slowing China: Steven Barnett says not to worry about a slowdown in China. “Less growth in China today will mean higher income in the future. So rather than worry, we should welcome the slowdown in China’s economy. Why? Because by favoring structural reforms over short-term stimulus, China’s leadership is illustrating their commitment to move to a more balanced and sustainable growth model.”
–Marriage and Kids: Shelly Lundberg and Robert A. Pollak examine marriage trends. “Marriage patterns have changed in the last 50 years as fertility rates declined and cohabitation became more widespread. These trends can be explained by a shift in the gains from marriage away from specialisation and towards investment in children. This column argues that different patterns in childrearing are key to understanding class differences in marriage and parenthood. Heterogeneity in preferences for – or ability to invest in – child human capital explain marriage and fertility patterns across socioeconomic groups.”
–Inflation and Income: Binyamin Appelbaum follows up his story on the benefits of inflation with a look at how incomes would be affected. “First, it highlights one of the most powerful arguments against increasing inflation while the economy is weak. If the Fed drives up inflation, prices would rise first. Even if wages follow, the very people who most need help would feel the short-term pain most acutely. It would feel something like a temporary national sales tax. Second, there’s no guarantee that incomes would keep pace with higher inflation. To be clear, inflation by definition increases total income. Someone ends up holding the new money. The question is about distribution: Are workers able to secure the raises necessary to keep pace with inflation, or does the extra money simply pad profits? In some cases, it is clear that incomes will not rise in the short term.”