Feldman's Faves: May 17, 2021

Happy Monday everyone. This weekend was glorious – I hope people got a chance to be outside. As trees get greener and the flowers start to bloom I am reminded what a great city we live in and how this time of year is simply the best (as long as you take your Claritin).

I wanted to thank Brenda, Emily and Julian for their presentation on Friday. I know we normally don’t talk law at these meetings but this is such a once in a lifetime deal that we thought it was worth sharing.

This week’s recommendations are a little heavier than in other weeks but do raise some interesting topics in the world of economics and policy for your thought and consideration.

EVICTED By: Matthew Desmond - In this book, McArthur Genius, Mathew Desmond writes about eight families in the city of Milwaukee struggling with being evicted. This book was written in 2016, in the wake of the Great Recession but long before the Covid-19 crisis so I assume the statistics are worse now then at the time of writing. Desmond notes that low income households pay up to 70% of their income on housing, leaving inadequate funds for basics like food and medicine. But his main thesis is that evictions are not just a consequence of poverty but also a cause. As one reviewer states, “evictions make kids change schools and cost adults their jobs. They undermine neighbourhoods, force desperate families into worse housing, and leave lasting emotional scars”. The stories of what families go through when they get evicted are difficult to read and it is clear that there are no easy solutions to this growing problem. Desmond believes that housing is a basic right for all. He has done an excellent job in identifying, describing and humanizing this problem, but what is lacking here are concrete ideas for a solution. That said, the identification of the issue is important and one that policy makers will need to consider and have been doing with greater scrutiny and intensity. Here is a good summary - https://www.gatesnotes.com/books/evicted

Freakonomics Radio - The True Story of the Minimum-Wage Fight – One of the great unresolved political and economic policy debates happening in Canada and the United States these days is the in determining the best and most effective way to reduce poverty. Some policy makers, most notably former Presidential candidate and current candidate for Mayor of NYC, Andrew Yang, became famous for his idea of creating a universal basic income. Others like Bill Clinton in the 1990s pushed for “workfare”, so that people getting assistance from the government would need to work for it. The current issue that has many policy makers’ minds’ blowing is whether there should be a higher minimum wage (e.g., Joe Biden is requiring in his new proposed platform a $15 minimum wage for any company that contracts with the US government and is hoping this will be a springboard for universal acceptance across America). In this PODCAST, Stephen Dubner the host of Freaknomics Radio brings in experts from all sides of the political and economic spectrum to focus specifically on the minimum wage as a policy objective and means to alleviate poverty. I can tell that in listening to this, it is clear that there are no easy solutions (yes this seems to a theme this week, I know) – and every time a different expert speaks, I change my mind (luckily I am not a judge…). I would be very happy to discuss this issue with anyone who is interested once you have given this a listen – particularly if someone can give me THE answer……Here is the summary from the PODCAST itself: Backers of a $15 federal wage say it’s a no-brainer if you want to fight poverty. Critics say it’s a blunt instrument that leads to job loss. Even the economists can’t agree! We talk to a bunch of them — and a U.S. Senator — to sort it out, and learn there’s a much bigger problem to worry about: https://podcasts.apple.com/ca/podcast/freakonomics-radio/id354668519?i=1000519154610

Thank you for your ongoing participation.

And remember to stay safe, stay healthy and to docket daily.

Jon