Metropolitan Planning Council
Economic Policy That Doesn't Confront the Rise in Inequality Head-On Will Do Nothing to Help the Vast Majority of American Families
Economic Policy Institute
Using policy to shift economic power and make U.S. incomes grow fairer and faster. Boosting income growth for the bottom 90 percent requires a policy agenda that explicitly aims to halt or reverse the rise in inequality. Finding no relationship between rising inequality and faster growth means raising living standards for the bottom 90 percent can likely be better for overall growth.
Campaign for America's Future
When you dare to do big things, big results should be expected. The Sanders program is big, and when you run it through a standard model, you get a big result. - James K. Galbraith (former Executive Director of the Joint Economic Committee - the congressional counterpart to the CEA). Paul Krugman in The New York Times has attacked Sanders' economics. Here a number of prominent economists respond, showing how big a change the proposals actually are. They are HUUUGE.
Reader Comments - Edward Snowden, NSA and NBC; Police Crimes; U.S. Cuba Policy; Tiananmen Anniversary; Ralph Fasanella's Art; Prisons and Solidarity Confinement; Workers and Labor; Taxes and Economic Growth; Carbon Pollution; New Populism; Sexual Harassment; Sexual assault of women protestors in India; Les Orear - R.I.P.
Next New Deal
We must be careful of how we measure our progress. If we use the wrong metrics, we will strive for the wrong things. Economic growth as measured by GDP is not enough—there is a growing global consensus that GDP does not provide a good measure of overall economic performance. What matters is whether growth is sustainable, and whether most citizens see their living standards rising year after year.
Washington raised the minimum wage in 1998 linking it to inflation. In the 15 years that followed, the state's minimum wage climbed to $9.32 - highest in the country. Meanwhile job growth continued at an average 0.8 percent annual pace, 0.3 percentage point above the national rate. Payrolls at Washington's restaurants and bars, portrayed as particularly vulnerable to higher wage costs, expanded by 21 percent. Poverty has trailed the U.S. level for at least seven years
Since 2000, the Latin American region as a whole has increased its growth rate to about 1.9% annually per capita – not like the pre-1980 era, but a serious improvement over the prior two decades when it was just 0.3%. But Mexico hasn't joined in this long-awaited rebound: its growth has remained below 1%, less than half the regional average, since 2000. And not surprisingly, Mexico's national poverty rate was 52.3% in 2012, basically the same as it was in 1994 (52.4%).
Economic Policy Institute
The priority has to be jobs now, rather than any deficit reduction. On top of lowering unemployment, policy should also restore the bargaining power of low- and middle-wage workers. This means aggressively increasing the minimum wage; it means reestablishing the right to collective bargaining for higher wages; it means guestworkers should have full rights to the same labor market protections as resident workers; it means paying attention to job quality and wage growth.