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July 26, 2024

Two Cheers for Shrinking Black-White Opportunity Gaps

The latest in a series of important reports on social mobility by the research group Opportunity Insights is out, and it’s another conversation-changer. Across a variety of outcomes in adulthood and adolescence, the gap between black Americans who grew up with low-income parents and their white counterparts has narrowed over time. This news is certainly…

July 24, 2024

Housing and the American Worker

As the American Worker Project analysis shows, real wages have increased over time. Real wages are nominal wages corrected for changes in the price level, and a natural approach to understanding the way in which housing policy affects real wages is through (housing) prices. But the importance of housing to the economic well-being of the typical American…

July 23, 2024

How the 2017 Tax Law Made Itemized Charitable Giving a Luxury Good

Key Points Read the PDF. The Tax Cuts and Jobs Act (TCJA) of 2017 included some of the most far-reaching changes to the US income tax code in a generation. In addition to reducing statutory tax rates for individuals and corporations, the law adjusted the tax base. Among its most significant changes to the individual…

July 14, 2024

Fostering Normalcy for Foster Kids

When my daughter was 16 and was offered a job as a lifeguard, her boss told her she’d need to have her own bank account in order to be paid. No one gets checks anymore, just direct deposit. So I took her to our local bank branch and helped her open an account. This process…

July 10, 2024

Has Income Growth between Generations of Americans Stalled?

A defining aspect of the American dream is that the economic well-being of each generation surpasses that of the previous one. However, commentators have questioned whether this holds true for the most recent generations. A 2022 Gallup poll found that only 42 percent of Americans expect today’s young people to have a better life than…

June 20, 2024

The War on Poverty at 60: Lessons to Inform the Future

Event Summary On June 20, AEI’s Center on Opportunity and Social Mobility convened two panels to discuss the 60th anniversary of President Lyndon B. Johnson’s War on Poverty. The first panel examined poverty measurement. Panelists agreed that the official poverty measure is outdated and should no longer be used by government agencies. David Johnson from…

June 18, 2024

A Unified Theory of Education

When it comes to education, these have been the best of times and the worst of times. In 2021, Arizona adopted the nation’s first universal education-savings-account (ESA) program. In 2022, West Virginia adopted the second. That trickle became a flood in 2023, with states from Arkansas to Utah to Ohio adopting their own programs. Around…

June 18, 2024

Economic Opportunity and Social Mobility

Years ago, I worked at the Pew Charitable Trusts on something called the Economic Mobility Project. In 2009, we commissioned a survey covering opportunity, mobility, and the American Dream. One revealing question we asked was the following: The term American Dream means different things to different people. Here are some ways some people have described…

June 10, 2024

Employment and Labor Supply Responses to the Child Tax Credit Expansion: Theory and Evidence

AbstractThe 2021 Child Tax Credit (CTC) expansion increased government benefits to families, andespecially to families with the lowest incomes. Economic theory predicts that this policyintervention would have led to a reduction in labor supply among adults in those families. Ourreview of available research suggests that employment within broadly defined demographicgroups was not reduced by the…

June 10, 2024

The Economic World We’ve Lost

Populism has infected both major parties in the United States, leading to policies that previous generations of economic policymakers would immediately recognized as foolhardy and counter-productive. But whether the country can escape its self-destructive pessimism is anyone’s guess. WASHINGTON, DC – The past decade has brought a sea change in US economic policy, and not…