Located in New York City, SCEPA is at the center of a network of leaders dedicated to progressive and innovative education and ideas.
SCEPA faculty are investigating the economics of climate change, from mitigation proposals to implementation.
SCEPA focuses on the U.S. economy, with an awareness of the global context of domestic economic developments.
A research institute within The New School’s Economics Department, SCEPA is dedicated to collaboration between today’s experts and tomorrow’s leading economists.
SCEPA is working to reform a retirement system that is failing Americans.
Our projects are designed to empower policy makers to create positive change. With a focus on collaboration and outreach, we provide original, standards-based research on key policy issues.
SCEPA joined with the Economic Policy Institute on Capitol Hill to brief congressional staff and policy experts on tax expenditures, or incentives given through the tax code without scrutiny by Congress.
SCEPA economists are working on the prospects for a more progressive economic order to emerge from the shock of the recession. They have published papers and documents that place current events in a longer-term context as well as policy proposals to deal with short-term concerns. They are also documenting the emerging discussion of how the discipline of economics is reacting to the Great Recession and the questioning of conventional economic analysis.
Lance Taylor, a SCEPA Faculty Fellow, presents an overview of his new book, Maynard’s Revenge, in a Google Tech Talk.
The book, published this November by Harvard University Press, is a timely analysis of mainstream macroeconomics, posing the need for a more useful and realistic economic analysis that can provide a better understanding of the ongoing global financial and economic crisis.
The government spends $143 billion through tax breaks in an effort to expand pension coverage and security. Yet, over half of the American workforce does not have a pension. Retirement insecurity hurts business plans, workers’ lives and retiree well-being. Reform is needed.
SCEPA’s Guaranteeing Retirement Income Project, sponsored by the Rockefeller Foundation and in collaboration with Demos and the Economic Policy Institute, has a plan to guarantee safe and secure retirement income for all Americans.
Carol Hymowitz of Bloomberg News introduces us to Tom Palome, former Vice President for Oral-B, in her September 23, 2013, article, "At 77 He Prepares Burgers Earning in a Week His Former Hourly Wage."
At age 77, Tom is working two minimum wage jobs just to make ends meet. At the height of his career he was making over six figures a year, paid off his mortgage and put his kids through college.
Like 60% of seniors, Tom did not have enough saved for retirement. After his employer relocated to the west coast, Tom opened a consulting firm. Because he was self-employed, he didn't have a 401(k) account or tax-deferred IRA. Without a retirement savings plan, he managed to save $90,000. Investment experts estimate that retirement savings should be 10-20 times more than their annual working salary. So, while not nearly enough for retirement, he lost most of it in the 2008 financial crisis.
This article describes our ridiculous approach to retirement, where "59 percent of households 65 and older currently have no retirement account assets, according to Federal Reserve data analyzed by the National Institute on Retirement Security."
"'People who built successful careers, put their kids through college and saved what they could, are still facing downward mobility," said Teresa Ghilarducci, an economist at The New School, who has studied the finances of seniors."
"It's about to get worse. Right behind the current legions of elderly workers is the looming baby boomer generation, who began turning 65 in 2011 and are reaching that age at a rate of about 8,000 a day. They're the first generation expected to fund their own retirements, even as they live longer lives."
Outsourcing Economics, the title of a new book by Will Milberg and Deborah Winkler, has a double meaning. First, it is about the economics of outsourcing. Second, it examines the way economists have understood globalization as a pure market phenomenon and as a result, they have "outsourced" its negative social side effects to other disciplines to articulate and repair. This book discusses the embedded relationship that exists between the state and the market, and by what means the structure of the relationship dictates the distribution of gains from globalization. Milberg and Winkler demonstrate how the power and profits generated as a result of globalization creates a power asymmetry, with a concentration of wealth and income among a few at the top.
Additionally, they find that offshoring allows firms to reduce domestic investment and focus on finance and short-run stock movements. They point out that the term 'development' has become synonymous with 'upgrading' in global value chains. However, upgrading allows a larger firm to easily move their operations to less expensive states or firms. This forces offshore firms to keep their costs as low as possible, causing investment instability through increased capital mobility without improving wages or labor standards. As a result, offshoring reduces employment and increases income inequality in countries without worker protection policies.
The Center for European Economic Research, one of the leading research institutes in Germany, appointed SCEPA Faculty Fellow Willi Semmler as a Research Associate. This summer, he was the keynote speaker for their Conference on Recent Developments in Macroeconomics.
His keynote speech was based on his paper, "The Macroeconomics of the Fiscal Consolidation in the European Union," that found the European Union's austerity policies neglected to take into account the consequences of reducing social safety nets. Fiscal austerity was imposed in the European Union assuming the multiplier effect would be weak, and fiscal consolidation would be swift. The multiplier effect measures the impact government spending or tax cuts has on the overall economic activity of a state.
Semmler argues that the effects of the fiscal multiplier are larger in recession and weaker during economic expansions. This means that government spending increases can stimulate the economy in a recession, but also that spending cuts and financial market stress can make the effects of austerity policies even more severe. Semmler shows that the size of the multiplier and the success of debt stabilization depend on a country's system of government and economic environment, including financial stress, credit spreads, the vulnerability of the banking system, monetary policy actions, the state of internal and external demand, exchange rates and so on.