Tags: Shiller | wealth | planning | Krugman

How to Get Rich? Live Like a Student, Shiller Says

By    |   Thursday, 26 February 2015 08:40 AM

There's a lot to be said for living beneath your means. Indeed, one sure fire way to increase your savings is to live like a student, says Nobel laureate economist Robert Shiller of Yale University.

"My students are living all right," he told Yahoo Finance. "I’ve suggested to them, why don’t you just continue to live at that level after you get a job? It would pile up into a lot of money."

You don't have to take Shiller literally. "He's not saying you should just eat mac and cheese your whole life and get your furniture from Goodwill," says Yahoo columnist Rick Newman.

"What he's saying is the thrifty habits you develop when you're on a low budget, see how long you can hold on to those habits, even when you get a job, you start to have more money, the pressure mounts to buy more stuff."

Meanwhile, many commentators say education represents the best solution to growing income inequality, as it gives the poor an opportunity to raise their job skills.

But that's not the case, says Nobel laureate economist Paul Krugman. "Whatever serious people may want to believe, soaring inequality isn’t about education, it’s about power," he writes in The New York Times.

Krugman stresses that he's not a foe of education. "It should be available and affordable for all. But what I keep seeing is people insisting that educational failings are at the root of still-weak job creation, stagnating wages and rising inequality."

That doesn't jibe with the evidence, he says. And it's "a way to hide from the real, unavoidably partisan debate."

There's no skills gap limiting job growth, Krugman writes. And when it comes to wage increases, "all the big gains are going to a tiny group of individuals holding strategic positions in corporate suites or astride the crossroads of finance," he states.

"Rising inequality isn’t about who has the knowledge, it’s about who has the power."

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There's a lot to be said for living beneath your means. Indeed, one sure fire way to increase your savings is to live like a student, says Nobel laureate economist Robert Shiller of Yale University.
Shiller, wealth, planning, Krugman
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2015-40-26
Thursday, 26 February 2015 08:40 AM
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