Archive for November, 2014

Arts Majors Face Increased Student Loan Burdens after College

November 26, 2014

Graduates across all majors have similar loan amounts after graduation  However, payment is a heavier burden for students who graduate with degrees in arts, sports, or humanities.  After graduation, salaries increase by an average of 65% in the first five years. However, non-career-oriented degrees start at much lower wages (x axis in the chart above) and thus pay a significantly higher percentage of their income in loan payments.

–from The Atlantic

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Low Taxes in the US Causing Income Inequality to be High

November 21, 2014

The United States has the highest income inequality among comparable nations. The left-side graph depicts the US as having a favorable Gini coefficient (a measure of income inequality) without taxes. After taxes and government transfers are factored in, the US becomes highly unequal. One of the reasons for this trend is that, although the US uses progressive taxation, the tax rates are significantly lower than the international standard and social welfare programs are also much less generous.

–From The New York Times

Small Age Gap between Spouses Lowers Likelihood of Divorce

November 13, 2014

A study, published by The Atlantic, suggests that the larger the age gap between a person and their spouse, the higher the chances that the marriage will end in divorce.  As the figure suggests, if spouses have one year age gap they are 3% more likely to get divorced than individuals who are of the same age. If the age difference crosses twenty years, the couples are over 172% more likely to get divorced.

–From The Atlantic

New Home Value Indicies Show Owners Over-Value Homes during a Crisis

November 4, 2014

Quicken Loans released two new indices, the ‘Home Value Index’ and the ‘Home Price Index,’ as depicted in the graph above.  These indices reveal that homeowners overvalue their homes in times of economic crisis. This can be seen in the graph where home values are significantly overstated by homeowners during the 2008-09 financial crisis. The opposite effect is seen when the market is rebounding:  homeowners tend to undervalue their homes.

–From Quicken Loans Press Room