Just heard Fed chair Janet Yellen give this great talk on inequality of wealth, income, and importantly, opportunity. I’ll have more to say later, but do give this a read. Some points that jumped out to me: –It’s fundamentally important that she gave this speech, as it was when President Obama gave a speech elevating… Read more
Where the “hole” is wage stagnation. Over at PostEverything.
Starting back to the 1980s, I and others wrote about the growing trends in income, wages, and wealth inequality with some alarm. That early work was important, but it was also missing something important: the impact of rising inequality. There’s now a growing body of research documenting this impact on various dimensions of opportunity and… Read more
Sorry, but Steve Roth’s critique of my Inequality and Growth paper for CAP is misleading and inaccurate. Moreover, he had to work pretty hard to miss my points linking inequality to macro-instability and thus persistent periods of weak growth. Not only does Roth somehow miss my emphasis on what I think are critically important linkages… Read more