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June 26, 2024
American Workers Are Doing Great. They Could Be Doing Even Better.
Editor’s note: This is one of a pair of essays responding to the Economic Innovation Group’s report, “The American Worker: Toward a New Consensus”, by Adam Ozimek, John Lettieri, and Benjamin Glasner. The other is by Paul Krugman of the New York Times. To the Economic Innovation Group’s attempt to articulate a “new consensus” about the American…
December 18, 2023
The State of Democratic Capitalism: 2023
How to assess the health of democratic capitalism in the United States? Fundamentally, it is very strong. The marriage of democratic politics and a free-market economy continues to strengthen each, with free markets generating the employment opportunities and prosperity that lead to widespread support for our political system and the rule of law, strengthen democratic…
December 14, 2023
The Myth of the 1%
The skewing of income toward the top 1% of earners has become a central issue in American politics, with both Republicans and Democrats proposing higher taxes on the rich. But new research finds that it may not be true, suggesting that policymakers would do better to focus more on helping the working class. WASHINGTON, DC—For…
October 30, 2023
Does Wage Theft Vary by Demographic Group? Evidence from Minimum Wage Increases
Using Current Population Survey data, we assess whether and to what extent the burden of wage theft — wage payments below the statutory minimum wage — falls disproportionately on various demographic groups following minimum wage increases. For most racial and ethnic groups at most ages we find that underpayment rises similarly as a fraction of…
October 17, 2023
What Poor Children Need
When it comes to helping poor children in America grow up to enjoy successful adult lives, progressives and conservatives each have half the truth on their side. There is strong evidence to support both broad public spending programs and policies designed to encourage personal responsibility and stable households. What is the best way to help…
December 15, 2022
The Myth of Income Stagnation
According to the conventional wisdom, income stagnation and inequality are large and growing threats to broad-based prosperity in the United States. Many economists, journalists, business leaders, and elected leaders (from both parties) believe that for a large share of households, real (inflation-adjusted) income has not increased for decades, and that income inequality – the gap between higher- and lower-income households –…
September 19, 2022
Men Without Work in the Post-Pandemic Era
Event Summary On September 19, Harvard University’s Lawrence Summers and AEI’s Michael Strain joined AEI’s Nicholas Eberstadt to discuss the new edition of Mr. Eberstadt’s book, Men Without Work: Post-Pandemic Edition (Templeton Press, 2022). Mr. Eberstadt began by describing the decades-long flight from work by prime-age (25–54) men and the broadening of that trend to other demographics…