The U.S. economy in recent years has been characterized by slow average productivity growth and increasing productivity dispersion within industries. In this essay, author Chad Syverson discusses research into the potential causes of these patterns and outlines several policy changes that would yield expected productivity and wage benefits under general conditions.
Incarceration rates in the United States have more than tripled in recent decades as rehabilitation has gradually taken a back seat to a policy agenda emphasizing punishment and incapacitation. This raises important questions about the effectiveness of state and federal prisons in the United States, and about whether the resources required for long prison sentences would be better spent improving prison conditions and expanding rehabilitation programs.
Gale argues that although historically low interest rates reduce the cost of government borrowing, they are not a "get out of jail free card." Rising debt will slowly but surely make it harder to grow the economy, boost living standards, respond to wars or recessions, address social needs, and maintain the nation’s role as a global leader.
The COVID-19 pandemic is at once threatening American lives, the sustainability of our nation’s health care system, and our economic prosperity. Our paramount concern at this moment should be to slow the spread of this virus and equip our health care system to effectively respond. Saving lives and saving the economy are not in conflict right now; […]
Adam Looney (University of Utah), Jeff Larrimore (Federal Reserve Board), and David Splinter (Joint Committee on Taxation) provide an in-depth analysis of after tax and transfer incomes of middle-class Americans over time.
The US economy lost a net of 8 million jobs between February 2020 and April 2021. Agreement is growing that people not actively seeking employment (inadequate labor supply) has been playing a major role in the slow recovery, as evidenced by factors including record job openings, the largest wage increases in decades, and other signs […]
Many Americans are being left behind by today’s modern, global economy, and they are justifiably angry about it. Growing numbers of people feel our economic and political systems are rigged against them. And it’s no wonder why.
This proposal recognizes the simultaneous need for more college educated workers and also for a higher level of labor market skill among non-college educated individuals. The authors propose to invest in the upskilling of the American workplace by better leveraging the potential of the community college sector.
The American economic system has always been the foundation of our national strength. But this foundation is showing cracks—from high levels of income inequality, declining economic mobility, and persistent economic insecurity among low- and middle-income Americans.