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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.
Book Draws Praise from Two Former Chairmen of White House Council on Economic Advisors
Economist Teresa Ghilarducci, one of the nation’s leading experts on retirement security, and Blackstone President Hamilton “Tony” James today announced the publication of their co-authored book, Rescuing Retirement: A Plan to Guarantee Retirement Security for All Americans, at a reception hosted by Michael Bloomberg. The book outlines a deficit-neutral proposal to ensure that all workers can save enough to retire through mandated, individually-owned, and effectively-invested Guaranteed Retirement Accounts. Left unaddressed, the authors emphasize, the strain of a newly poor population of senior citizens would devastate federal, state, and local budgets for decades to come.
Key components of their visionary plan include:
- Universal coverage: Every American worker would have their own Guaranteed Retirement Account, ensuring consistent retirement savings throughout their career.
- Individually owned, effectively invested: Unlike Social Security, workers keep ownership of their assets through transparent individual accounts. As with traditional pension plans, their assets will be pooled and invested in long-term, strategies that generate higher returns than current 401(k) plans.
- Deficit-neutral and costless for families at or below median income: The plan redeploys current tax subsidies more evenly across the income distribution, and uses existing Federal payment infrastructure, avoiding a negative impact on the budget.
- Guaranteed lifetime income: Upon retiring, savings will be returned through life-long payments, guaranteeing a continuous standard of living as long as retirees live.
- Bipartisan appeal: This model keeps accounts under personal control, distributing savings based on the amount invested, not based on income, and without impacting the budget or raising taxes.
The publication of the book coincides with the launch of a website dedicated to the plan and its promotion, rescuingretirement.org, and a social campaign driven by the hashtag #fixretirement on Twitter and Facebook.
“This book should be required reading for everyone concerned with how Americans will fund their retirements and makes a compelling case that it should include us all. It is an important conversation starter in an area that will only get more relevant in the years to come,” said Austan Goolsbee, Former Chairman, White House Council of Economic Advisers.
“At a moment when America's retirees are caught in the middle of a political tug-of-war, James and Ghilarducci offer a new way forward. Rescuing Retirement proposes a provocative yet practical solution to America's pending retirement crisis,” said Alan Krueger, Professor of Economics, Princeton University and Former Chairman, White House Council of Economic Advisers.
“Our retirement system is broken – if we do not take action, America will face rates of poverty among senior citizens not seen since the Great Depression,” said Teresa Ghilarducci. “Our Retirement Savings Plan is a pragmatic solution that includes no new taxes, will not increase the deficit, and intelligently integrates into existing infrastructure to address this massive issue that cuts across all demographics.”
Said Hamilton “Tony” James, President and Chief Operating Officer of Blackstone: “If the country acts now, we can solve this problem, and solve it relatively painlessly for everyone. Our plan is a simple, sustainable, low-cost and politically viable proposal to enable workers to save and invest more effectively to secure their retirement.”
“Clear, thoughtful, and engaging. This book is a must-read for future retirees, policymakers, and anyone concerned with our nation's future,” said Christian Weller, Senior Fellow, Center for American Progress.
“We may have philosophical differences, but the plan put forth by Teresa and Tony provides a bold, refreshing approach to modernizing America's retirement infrastructure,” said Bill Jansien, CEO, StoneHedge Global Partners and member, Federal Retirement Thrift Investment Board.
The publication of this book follows the authors’ March 2016 white paper published by the Schwartz Center for Economic Policy Analysis (SCEPA) at the New School, “A Comprehensive Plan to Confront the Retirement Savings Crisis,” and their January 2016 New York Times op-ed, “A Smarter Plan to Make Retirement Savings Last,” in which they wrote, “Our plan would guarantee millions of Americans safe and secure retirements that would benefit them, their families, and the nation’s economy.”
On Tuesday, September 20, 2016, POLITICO's Ben White hosted co-authors Teresa Ghilarducci and Blackstone President Tony James for a "Cocktails and Conversation" event featuring their new book, Rescuing Retirement.
The event welcomed representatives from the media, government, industry, non-profits and advocacy groups as stakeholders in the need to solve the retirement crisis. Ghilarducci and James, left, shared their book and proposal for Guaranteed Retirement Accounts (GRAs) with House Minority Leader Nancy Pelosi.
Ghilarducci and James are working to lift up the efforts of 27 states working to provide a retirement plan for all Americans. The GRA would provide all workers with a safe place to earn higher rates of return than in a 401(k) and ensure workers a stable income for the rest of their lives.
Teresa Ghilarducci, economist and director of The New School’s Retirement Equity Lab (ReLab), and Hamilton “Tony” James, president of Blackstone, have combined their academic and business expertise to advance a powerful reform idea—Guaranteed Retirement Accounts (GRAs). Outlined in their new book, Rescuing Retirement, GRAs are individual retirement accounts that would provide universal coverage, low fees, and professional investment management.