- On Capitol Hill
- On Wall Street
- In the Press
- Policy Reform Work
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.
Who is more vulnerable to natural disasters?
At the November 11th economics seminar hosted by SCEPA and The New School’s Economics Department, New School Economics Professor Lopamudra Banerjee argued that a household’s location in the class structure of a social system is a more important indicator of its chance of experiencing physical exposure to an extreme phenomenon in the environmental system, like flood, than the household's geographic location in a region of hazards.
Banerjee draws on extensive data on natural disasters in Bangladesh, Tanzania, Indonesia, and on her own field research, to better understand why only some households experience exposure to disaster events.
At first pass, the data suggest that exposure to natural disasters is a matter of randomness. Taken alone, a household’s level of education, volume of assets, or value of expenditures doesn’t correlate convincingly with its likelihood of experiencing disaster exposure.
Upon closer look, Banerjee finds that risk of exposure is best predicted by the “composition of capital” owned by a household, rather than its volume of capital, per se. And, it is this composition of capital (which takes into account both non-material embodied assets like the level of education of household members, and material physical assets used as means of production) which indicates the most likely class situation of the household in the social structure. The notion of class situation employed here is a particular reading of German sociologist Max Weber’s ( 1978) original concept.
In terms of her empirical analysis of the patterns of disaster exposure in a population, Banerjee's results suggest that the most vulnerable group are what Weber called the “petty bourgeoisie,” property owners with relatively low income, assets, and education. While the more wealthy members of a population can afford to protect their possessions from natural disasters, and the more poor members have little to lose and the flexibility to relocate; the class of petty bourgeoisie might be less nimble to move away from harm's effect when a disaster event occurs in their region of location; and therefore, bear greater risk of exposure in the event of a disaster. They own just enough that they have something to lose and cannot move, but not enough to protect their property from natural disasters.
Banerjee’s research shows that the more wealthy and well-educated are not necessarily immune from natural disasters. Vulnerability is best understood as a function of the complex intersection of characteristics that determine social class.
*Note: Presentation slides reflect research in progress and are not for citation.
Kim Clark interviewed ReLab Director Teresa Ghilarducci for Money Magazine on the state of retirement security. The article, "How to Solve America's Retirement Crisis," discusses how America’s current retirement system is failing, evidenced by declining coverage rates and traditional pension plans, as well as the high fees associated with 401(k)-type plans.
Fortunately, there are solutions, both for individual savers and through government policy. In the article, Ghilarducci gets into specifics, but for the long-term, recommends Guaranteed Retirement Accounts to ensure retirement security across the board.
Economic growth can be a rising tide to lift all boats, so we are told. Advocates for cutting Social Security benefits by raising the retirement age imply that economic growth will create jobs for older workers left to work longer. But the data debunks this myth: America’s fastest growing cities have the highest rates of unemployment for older workers.
Nationally, this morning’s job report from the Department of Labor reported an October unemployment rate of 3.5% for older workers (aged 55-64). But in the 10 cities with the highest gross metropolitan product (GMP) growth in 2014, the numbers are worse, with 5.6% of older workers unable to find jobs, as compared to a metropolitan average of 4.0%.
Economic growth is not a quick solution to the difficulties faced by older workers who can’t afford to retire. Why? The factors that drive economic growth – a booming tech and finance sector, for example - don’t necessarily produce jobs for older workers. In fact, industry specialization - a key driver of growth - could explain why older workers struggle in booming cities.
The 10 cities with the highest growth in output, over 5.5%, have a higher demand for technology jobs and significantly higher demand for finance, insurance and real estate jobs than the national average. For example, Austin, Texas, and San Jose, California, are home to expanding technology sectors, but recorded unemployment rates for older workers of over 12%. If high growth becomes dependent on jobs requiring knowledge of cutting-edge software at a time when firms are less willing to train workers, older workers will continue to be at a disadvantage in the labor market.
Instead of raising the retirement age, consigning older workers to an unfriendly labor market and increasing risk of old-age poverty, Americans need Guaranteed Retirement Accounts (GRAs), a reliable and effective method to save for retirement.