declarationSCEPA Economist Willi Semmler joined 266 economists from 44 countries in signing the Economists Declaration on Universal Health Coverage, calling on global policymakers to "prioritize universal health care coverage as an essential pillar of sustainable development." Semmler, a professor of economics at The New School, directs SCEPA's Economics of Climate Change project. 

As the United Nations meets this week to adopt 17 sustainable development goals, the declaration urges the international body to prioritize a "pro-poor pathway to universal health coverage" and calls for increased domestic funding, donor country commitments, and political leadership to advance necessary reforms. The economists estimate the benefits of investing in basic health care will be 10 times greater than the costs. 

The declaration was convened by the Rockeller Foundation and led by Harvard Professor and former US Treasury Secretary Larry Summers. 

Aleksandr Gevorkyan, Professor of Economics at St. John's University and New School PhD, joined with Otaviano Canuto from the World Bank to call for the creation of a Migration Development Bank (MDB).

With 250 million migrants in 2015, the authors cite the need for "an internationally recognized and functional institutional financial framework that would systematize the positive economic impacts of migration and remittances for developing countries while smoothing capital and labor flows."

Using Eastern Europe and the Former Soviet Union as case studies, they show how an MDB would provide an institutional framework for remittances and build the possibility for development in migrants' home countries.

Their article was published by Huffington Post, EconoMonitor and Seeking Alpha.

SCEPA Economists at DFG ConferenceThe German Research Foundation (DFG) awarded grants to seven SCEPA economists to support research on wealth and disparity in the United States and Germany. SCEPA Faculty Fellows Willi Semmler, Mark Setterfield, Christian Proaño, Teresa Ghilarducci, Rick McGahey, Research Economist Joelle Saad-Lessler, and NSSR Dean William Milberg are among the experts chosen for funding.

Semmler and Setterfield will research the trends, policies, and macroeconomic implications of inequality. Proaño's research focuses on experimental economics, entrepreneurship, and inequality. Milberg will analyze research from Lederer and other German University in Exile scholars who studied labor markets and inequalities. Ghilarducci, McGahey, and Saad-Lessler will research employment and retirement outcome inequalities in the two countries.

Cole Strangler of the International Business Times provides context for the Department of Labor's January employment report in his article, Job Growth Still Hasn't Translated Into Wage Gains. He describes real people's experiences with wage stagnation and illustrates the balance between business and labor.

"Standard economic theory holds that, at some point, sinking unemployment will translate into wage gains: When companies have a smaller pool of talent to choose from, they tend to offer more attractive salaries. By the same token, when workers have a sense of job security, they're more likely to ask for a raise.

This hasn't happened.

"I haven't run any empirical work on this, but I'd want to see the unemployment rate a lot closer to 5 percent, maybe even slightly below, before I would expect to see that we'd get significant wage pressure," said Richard McGahey, an economist at the New School and former economic policy adviser for Sen. Edward Kennedy.

Shrinking union density has boosted the share of profits going to bosses rather than workers, McGahey said."

Rick McGaheyby Rick McGahey, SCEPA Faculty Fellow

In today's New York Times, Paul Krugman confuses issues around internal population migration in the U.S. with issues of job creation and economic growth. He ends up in an unnecessary and defensive argument about whether low-wage and anti-regulation states like Texas are a superior economic model.

First, there just isn't that much net internal migration. The American Community Survey tells us that in 2012, net migration between New York State and Texas was 9,043 in favor of Texas (20,274 New Yorkers to Texas, but 11,231 Texans to New York State). That is less than one-half of one percent of the total population of New York State, hardly a big trend. In fact, researchers are trying to figure out why internal migration is declining, not rising—in 2011, Federal Reserve researchers noted that "by most measures, internal migration in the United States is at a thirty-year low." 

Second, outmigration and relocation is driven by a lot of things beyond relative taxation or regulation, including baby boomer retirements (oddly not mentioned in Krugman's column). If you just want to hold down migration, make New York a more attractive retirement location. Texas has had relatively strong job growth since the Great Recession, but analysts attribute much of that to natural gas and oil production, including virtually unregulated fracking. 

Krugman's column has produced a predictable set of online complaints about high taxes and repressive regulations in New York relative to the South. New York does need more housing density, although the region has many housing opportunities given our public transportation network. But Krugman's odd use of what in reality are vanishingly very small numbers on migration to Texas inadvertently contributes to a misguided narrative about how attractive Texas and other bottom-feeder states really are.

lilliesThe Schwartz Center for Economic Policy Analysis (SCEPA) at the New School for Social Research is deeply saddened by the death of Irene Schwartz, best friend and wife of Bernard Schwartz. Bernard and Irene paid special attention to The New School Economics Department's commitment to economic policy and social justice. Together they named a professorship and provided scholarships and other material support to our economics students and faculty. Bernard and Irene, compassionate for the plight of vulnerable elderly and for the aspiration of all workers to retire in dignity, also support SCEPA's Retirement Equity Laboratory.

We are grateful for Irene's love for Bernard that helped he and she be expansive and proactive in solving problems of injustice facing humanity. We send our deepest sympathies to her family and friends, especially to her husband, our mentor and friend Bernard Schwartz.

The Members of the Schwartz Center for Economic Policy Analysis at The New School for Social Research 

On June 23, 2014, SCEPA Director Teresa Ghilarducci appeared on MSNBC's UP with Steve Kornacki along with Neera Tanden from the Center for American Progress and Paul Sonn with the National Employment Law Project to discuss the bigger economic picture that necessitates raising the minimum wage. The panel discussed the facts that productivity gains have far eclipsed wage gains, that the federal minimum wage has been stagnant since 2009, and that the average hourly pay has declined over the past 12 months. The panel overwhelming agreed the best way to address these structural economic issues is through increased collective bargaining. A recent working paper by Teresa Ghilarducci and Joelle Saad-Lessler find two factors that significantly impact the likelihood of obtaining employer-offered benefits - time spent unemployed and union status. Therefore, attempts to raise wages must address the decline in workers' bargaining power and change the norms relating to benefits and wage provision. The City of Seattle has taken the largest step in addressing the wage gap by elevating their minimum wage to $15 an hour, while Massachusetts offers the highest state level minimum wage at $11 an hour. Teresa Ghilarducci ended the MSNBC panel with a summary of the advantages of unionization for both workers and employers.

Professor Ed NellOn May 3rd, the Economics Department of The New School for Social Research honored Professor Edward J. Nell's 39 years of teaching with a conference celebrating his many contributions to the field of economics. Prior to his retirement in 2013, Nell served as the Malcolm B. Smith Professor of Economics since 1969. He published more than twenty books and wrote hundreds of articles for leading journals on macroeconomic theory, monetary analysis and finance, economic methodology and philosophy, and transformational growth and development.

Below is a sample of the working papers contributed to the conference by former students inspired by Professor Nell.

Willi Semmler: "A New Chapter"
Anna Shoysta: "Edward Nell as the Worldly Philosopher: Shaping the Minds of the Future Economists"
David Laibman: "Democratic Planning and Incentives – Coming to Grips with (Yet Another) Impossibility Theorem"
Louis-Phillippe Rochon: "The Monetary Circuit and the State"
Sergio Parrinello: "A Search for Distinctive Features of Demand-led Growth Models"

Darrick HamiltonSCEPA economist, Darrick Hamilton recently coauthored the report, "Beyond Broke: Why Closing the Racial Wealth Gap is Priority for National Economic Security" with the Center for Global Policy Solutions, the Carolina Population Center at UNC, the Research Network for Racial and Ethnic Inequality at Duke University, and Milano Graduate School of International Affairs at The New School.  The report evaluates wealth disparities across racial and ethnic categories by providing an in-depth analysis of housing and liquid wealth.

The report finds that:
• Between 2005 and 2011, the median net worth of households of color remained near 2009 levels, reflecting a drop of 58 percent for Latinos, 48 percent for Asians, 45 percent for African Americans but only 21 percent for whites.

• For most African Americans and Latinos, checking accounts are their only liquid asset.

• African Americans (38 percent) and Latinos (35 percent) are over twice as likely as whites (13 percent) to hold no financial assets at all and to have no or negative net worth.

This analysis provides new insight into the close interplay between race and place as it relates to America's persistent wealth gap. To address these issues, the report calls for Congress and the Administration to ensure that future mortgage settlements include the collection of racial/ethnic, gender, geographical and other demographic data to ensure that relief programs are transparent, fair, and target the hardest-hit communities. The report also calls for the Federal Housing Finance Agency to allow Freddie Mac and Fannie Mae to perform principal reduction and loan modifications for distressed homeowners.

This report is part of the Closing the Racial Wealth Gap Initiative, which seeks to build awareness and support for efforts to address racial and ethnic wealth inequalities based on structural factors.

Bernard L. Schwartz - an investor, a retired industrialist, a progressive public policy advocate and a philanthropist - recently published his autobiography, 'JUST SAY YES: What I've Learned About Life, Luck, and the Pursuit of Opportunity.'

JUST SAY YES is a story about a boy raised in Depression-era Brooklyn who grew up to become a giant in the aerospace business, a confidante of U.S. presidents, and a renowned international deal maker. From this lifetime of experience, Schwartz finds himself increasingly concerned about the future of the United States and its citizens due to the ever-increasing gap between the country's have's and have-not's. "Far too much emphasis is put on money and profit, instead of treating clients and customers as human beings. Our political leaders must also come back to the table, and start working together to improve the lives of all citizens." Without this effort, Schwartz fears that our glory days will remain behind us. As an "optimist by nature," Schwartz believes that American politics and business can change for the better.

Bernard L. Schwartz on his new book, 'Just Say Yes' - An Interview with Charlie Rose at the New-York Historical Society from Bernard L. Schwartz Center on Vimeo.