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April 17, 2024

Fiscal Sanity Please, Senators

The Wyden-Smith tax bill, which combines an expanded child tax credit (CTC) with a variety of business tax breaks, has been in limbo in the Senate for the past three months. Majority Leader Chuck Schumer has promised to bring up the bill if there’s enough support, but so far, these votes have not been forthcoming…

April 10, 2024

The Political Landmines Buried in the Latest Jobs Report

CNN on Friday dubbed the latest monthly jobs report a “blowout,” pointing to 303,000 net new jobs created in March. President Joe Biden immediately claimed credit, saying the report “marks a milestone in America’s comeback,” as it indicates a total of “15 million jobs created since I took office.” Meanwhile, the latest data confirm that most…

April 5, 2024

What’s Wrong with the US Economy? Anything?

Economists were expecting 200,000 net new jobs added in March. Instead it was 50 percent more. Unexpected strength, but maybe not so unexpected, really, for an economy that continues to deliver surprise after surprise. It’s been a great run lately for economic optimists: real wage gains, faster labor productivity, and gobs of jobs. A tight summary…

March 7, 2024

Growing Congressional Dysfunction Will Worsen Our Fiscal Problems

Few were surprised when deposed House Speaker Kevin McCarthy (R., Calif.) retired in December. While Republican leaders tend to exit quickly after losing committee gavels or leadership posts, the additional departure of other respected senior lawmakers in both parties is damaging legislative capacity on the Hill. Congress is losing the sort of policy-making veterans it needs to craft and pass important legislation. Their reasons for leaving vary and often include Congress’s general inability to pass needed legislation. That dysfunction is evident…

February 12, 2024

Millennials Are Doing Better than You Probably Think

“Each generation is worse off than the one before.” It’s one of the primary tenets of the notion that American capitalism has failed and that we live in the final days of “late capitalism.” But have things really been all downhill since the Boomers became adults? Maybe not, according to the new study “Has Intergenerational…

February 2, 2024

Has Intergenerational Progress Stalled? Income Growth over Five Generations of Americans

Abstract We find that each of the past four generations of Americans was better off than the previous one, using a post-tax, post-transfer income measure constructed annually from 1963-2022 based on the Current Population Survey Annual Social and Economic Supplement. At age 36–40, Millennials had a real median household income that was 18 percent higher…

January 15, 2024

The Economy Is Good. Why Do Consumers Feel So Bad?

As we approach another federal election cycle, there will be a lot of talk about the state of the economy. Are Americans better off, economically speaking, than they were when President Biden took office three years ago? Despite our having lived through a pandemic and the resulting unprecedented economic shocks, it still should be a…

January 12, 2024

When It Comes to the State of the American Economy, Let’s Keep It Real

Here we go again. An oft-repeated economic claim on social media is that most Americans lack the means to cover a $400 emergency expense. More evidence that most of us in “late capitalist” America live paycheck to paycheck. Indeed, another common claim on social media is that nearly 80 percent of US workers live paycheck…

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…