December 11, 2023
Has Inequality Made Americans Poorer than Bulgarians, Russians, and Filipinos?
A recent column by John Burn-Murdoch in the Financial Times presents statistics side-by-side showing that “the wealthiest Americans are the richest people in the developed world, but America’s poorest are also the most likely to go hungry.” The chart buttressing the latter part of that conclusion shows that in over 12 percent of American households,…
October 5, 2023
Do 60 Percent Of American Workers Have Insecure Jobs?
American Compass has a new survey out in which it finds, among other results, that “only 40 percent of workers have secure jobs.” This is the latest attempt by the outfit to portray the American economy as in dire need of “rebuilding.” The report summarizing the findings is titled, “Labor Market Not Yet Working for…
June 24, 2023
Family Affordability in America: A Story of Decline or Achievement?
On June 22, AEI’s Scott Winship and Angela Rachidi were joined by Oren Cass of American Compass and Idrees Kahloon of the Economist to review the evidence on family affordability in America. Event Summary The event began with presentations from the three panelists, each presenting original research on changes in the ability of the average…
June 22, 2023
The Cost of Thriving Has Fallen: Correcting and Rejecting the American Compass Cost-of-Thriving Index
AbstractThe Cost-of-Thriving Index (COTI), developed by American Compass Executive Director Oren Cass, asks whether families can afford a middle-class lifestyle. It compares the costs of five goods and services to the income of a typical full-time male earner. Cass concludes that the cost of thriving has increased dramatically, from 40 weeks of work in 1985…
June 21, 2023
The Bad Math Behind Economic Doomerism
It’s a big week for American Compass, a think tank founded in 2020 that fancies itself as the “pre-eminent alternative to the Old Right’s market fundamentalism.” On the heels of its new policy book, Rebuilding American Capitalism, it hosts an event on Capitol Hill today with multiple Republican senators. It’s the latest sign of the intellectual confusion afflicting…
June 14, 2023
Better Data Means Better Policy
“Did you adjust for inflation?” An occupational inconvenience of doing economic research is that you are routinely asked by disbelieving non-researchers whether your numbers have taken into account the rising cost of living. The answer to that question is nearly always, “Yes.” The debates among researchers are about how to adjust earnings and income for inflation, and…
December 14, 2022
Bringing Home the Bacon: Have Trends in Men’s Pay Weakened the Traditional Family?
Key Points
December 1, 2022
Was Rising Inequality Behind Falling Absolute Mobility? Reassessing Chetty et al. (2017)
In 2017, a widely publicized paper by a research team led by Harvard economist Raj Chetty found that while the vast majority of American kids born in 1940 ended up better off at age 30 than their parents fared at the same age, that was only true of half of kids born in 1980. Moreover,…
June 10, 2021
Long Shadows: The Black-White Gap in Multigenerational Poverty
Key Points Executive Summary Issues of racial inequality and injustice are center stage in America today—especially the position and treatment of Black Americans. This report presents evidence on long-term differences in opportunity by race. Previous research showed large racial gaps in poverty and mobility across two generations. We take a longer view, examining patterns of…