- 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.
New School Economics Professor Sanjay Reddy is offering a free online course in microeconomics in collaboration with the Institute for New Economic Thinking (INET). Titled, "Advanced Microeconomics for the Critical Mind," the class will transcend the narrow and technical nature of modern microeconomics to present a holistic survey of the discipline. The course will engage students in a wide range of topics so they can better understand the foundations and implications of modern microeconomic theory.
Professor Reddy received his PhD from Harvard University in 2000. His research focuses on Development Economics, International Economics, and Economic Philosophy. Teaching Assistant Rafaele Chappe received her LLM from New York University, and came to The New School after eight years as an attorney in the financial services industry. Her research focuses on finance, risk management, and the political, social, and economic implications of the 2008 financial crisis.
Classes begin October 12th. The course is free and registration is open to anyone interested.
Bloomberg View's Christopher Flavelle reports in "A Great (and Impossible) Plan to Fix Retirement" that Americans are woefully unprepared for retirement and that SCEPA Director Teresa Ghilarducci's proposed policy fix is, despite political hurdles, the only potential solution.
The problem is simple: almost half of Americans aged 55-64 have no retirement savings whatsoever, and those who have some savings do not have enough to sustain them in retirement. Ghilarducci's solution: supplement Social Security with Guaranteed Retirement Accounts (GRAs), into which workers and their employers deposit 5% of their salary annually.
According to Flavelle, "The idea deserves attention, and not just because Ghilarducci's role with the campaign suggests Clinton could push something along the same lines if she becomes president. Just as important, what she's advocating illustrates the depressing difficulty of fixing retirement policy: For all the obstacles her plan presents, it's hard to think of anything better."
The U.S. Department of Labor today announced a slight increase for the unemployment rate for older workers (aged 55 and over) from 3.7% to 3.8% in August. While this number represents 1.3 million older Americans who cannot find a job, this national number hides the fact that some cities are less friendly to older workers than others.
In August, the national unemployment rate for all workers was 5.1%. In contrast, the local data (ASEC September 2014) shows four metropolitan areas have an unemployment rate of over 12% for older workers, including San Jose, California (13.7%), El Paso, Texas (13.6%), New Haven, Connecticut (13.1%), and Austin, Texas (12.2%).
These cities' high unemployment rates for older workers are not necessarily related to the unemployment rate for those under 54. While San Jose and El Paso have high unemployment rates for younger workers (8.4% and 7.3%), Austin has one of the country's lowest unemployment rates (3.6%) for younger workers.
Industry clusters could be to blame. San Jose and Austin are home to hot new tech corridors and New Haven's economy is closely tied to Yale University and its status as a college town. Both would favor employing the young over the old.
There are also regional pockets where older workers struggle to find a job, such as Ohio's Rust Belt cities. Cleveland has an unemployment rate of 9.6% for 55 and over versus 5.2% for workers 54 and under. Cincinnati's older unemployment rate is 7.7% versus 6.6% for younger workers.
Economists have long understood the domino effects of lower wages and decreased bargaining power resulting from high unemployment. Add to this a downward trend in access to retirement savings plans at work and older workers nearing retirement age are increasingly at the mercy of a labor market that cannot meet their needs. Ironically, the less work they can find and the less wages they can save, the longer older workers will need to work.
Only a national solution will ensure that all workers, regardless of where they live, will be able to retire rather than resign themselves to unemployment or low-wage work. Guaranteed Retirement Accounts (GRAs) would ensure a path to retirement by providing a safe, effective vehicle for all workers to save over their working lives.