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.
- Published on Tuesday, May 20, 2014
On May 21, 2014, SCEPA Director Teresa Ghilarducci testified before the U.S. Senate on Finance Subcommittee on Social Security, Pensions, and Family Policy at a hearing titled, "Strengthening Social Security to Meet the Needs of Tomorrow's Retirees." As a retirement expert, Ghilarducci provided an oral and written statement on how the retirement crisis exacerbates inequality.
The hearing was broadcast online. Below is an excerpt from Ghilarducci's comments.
"The current voluntary, self-directed, liquid, commercial retirement account system relies on generous tax subsidies and is stacked against workers for five reasons.
- Nearly half of workers have no plan at work because the system is voluntary. Only 53% of the workforce have any kind of retirement plan at work, which is down from 60% 10 years ago
- Middle class workers are more likely to take out loans or withdraw money before retirement from their 401(k) or IRA's than the highest income workers. Many workers use their retirement accounts as savings accounts. A 30-year-old who cashes out a $16,000 account will be losing an estimated $470 a month at age 67.
- Tax deductions create inequality in unintended and perverse ways. Two people can save exactly the same amount in their 401(k) plans and IRAs, but the higher earner will get a larger tax deduction and therefore a higher rate of return on their savings. Over just a few years this differential multiplies exponentially so the system unintentionally penalizes middle and lower income savers.
- Lower income workers have more conservative portfolios, which is rational, but those portfolios earn less overtime.
- Middle and lower income savers pay higher fees; they don't enjoy scale economies in fund management."
- Published on Monday, May 19, 2014
On May 7, 2014, the Connecticut General Assembly announced it's approval of a plan leading to the creation of a state-level public IRA plan open to all private sector
They estimate the feasibility study and subsequent plan for a new retirement policy will be ready to implement in 2016. This success is due to the hard work of the Campaign for Retirement Security Connecticut. SCEPA is a proud partner in this effort, having testified on numerous occasions in the state capitol on our research report documenting the state's retirement readiness. The SCEPA report, "Are Connecticut Workers Ready for Retirement?' revealed that in 2010, 50% of Connecticut workers were not currently participating in an employer-sponsored retirement savings plan.
- Published on Friday, May 02, 2014
by Rick McGahey, SCEPA Faculty Fellow
April’s employment report is a strong one on its own terms. The unemployment rate dropped by almost half a percentage point, from 6.7 percent in March to 6.3 percent in April; this is the lowest rate since September 2008, when the economy was plunging into the Great Recession. And payroll employment leapt up by 288,000, the biggest gain since January 2012. So all is good, right?
There’s no denying the strength of these numbers, but several factors caution against a full-blown celebration just yet. First, the dramatic drop in the unemployment rate is due not only to job growth, but to continuing declines in the labor force. The measured labor force fell by 806,000 people between the March and April household surveys (the source of the unemployment rate), while that survey actually showed slightly lower total employment in April than in March.
So, based on the household survey alone, the drop in the unemployment rate was almost entirely due to the lower labor force. BLS Commissioner Erica Groshen says their analysis shows the lower seasonally adjusted rate mostly due to “fewer people entering the labor force than usual…” but that still underscores that April’s lower unemployment rate is more a function of fewer people looking for jobs than it is of vigorous job creation.
But what about that strong payroll employment number?