You are here

Special Report | New Economic Perspectives: Economic Policy That Doesn't Confront the Rise in Inequality Head-On Will Do Nothing to Help the Vast Majority of American Families

Section(s): 

http://evergreenedigest.org/sites/default/files/New%20Economic%20Perspectives%20banner.jpg

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.

Related: 35 soul-crushing facts about American income inequality

Josh Bivens, Economic Policy Institute

https://portside.org/sites/default/files/styles/large/public/field/image/inequality_cartoon.jpg?itok=KeWke_gvCartoon: John Darkow, Cagle Cartoons, Columbia (MO) Daily Tribune

June 9, 2016 | In Progressive redistribution without guilt, EPI Research and Policy Director Josh Bivens explains why income growth for the bottom 90 percent will continue to disappoint unless policymakers put fighting the rise of inequality at the top of their agenda. Bivens argues that the rise in inequality in recent decades has been essentially zero-sum, with gains at the top of the distribution coming almost directly from gains at the bottom and middle. The zero-sum character of the rise in inequality means that policies aimed at progressively redistributing income can benefit the vast majority of working people without harming overall economic growth.

The rise of inequality over recent decades has been largely driven by a host of discrete policy changes that have regressively redistributed income to those at the very top. Many of these policy changes were championed by claims that they would boost overall growth rates, but Bivens argues that they have clearly failed on that front. The outcome of these policy changes have been a steadily rising “inequality tax” that has stunted income growth for the bottom 90 percent of households relative to what the economy had to the potential to deliver.

Josh Bivens joined the Economic Policy Institute (EPI) in 2002 and is currently the director of research and policy. He has authored or co-authored three books (including The State of Working America, 12th Edition) while working at EPI, edited another, and has written numerous research papers, including for academic journals.

Full story … 

Related:

http://www.evergreenedigest.org/sites/default/files/twitter-4-512.png Now you can follow Evergreene Digest on Twitter.

 

 


35 soul-crushing facts about American income inequality, Larry SchwartzAlterNet  / Salon

The money given out in Wall Street bonuses last year was twice the amount all minimum-wage workers earned combined