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 Thursday, April 10, 2014
On April 8, 2014, Teresa Ghilarducci, Director of SCEPA and Labor Economist testified before the Washington State Senate in Olympia and presented SCEPA's recently released study, "Are Washington Workers Ready for Retirement." This study finds that employer sponsorship of retirement plans in on the decline from 2000-2012. The availability of employer-sponsored retirement plans in Washington declined by two percentage points, from 62% to 60%. Four out of ten workers in the state do not have access to a retirement plan at work.
While this decline is smaller than in some other states, it follows a downward trend across the country. This trend means that, upon retirement, workers without access to a retirement plan during their working years will rely solely on Social Security and Medicare to survive. The support from these federal programs can be supplemented by personal savings, but, as we document below, workers without employer-sponsored retirement plans tend to be less financially secure overall and less able to save sufficiently (if at all) for retirement.
Most workers had less access to retirement plans in 2012 than they did in 2000, but the decline has not been equal across social and economic groups. Particularly stark is the drop in the sponsorship rate for female workers, whose access decreased from 65 percent to 60 percent. Female workers in Washington experienced a decline in sponsorship at more than double the rate of workers' overall sponsorship reduction.
- Published on Thursday, April 10, 2014
In March, SCEPA Director Teresa Ghilarducci testified before the Minnesota House of Representatives in support of HF 2419, which would study the potential benefits of creating the Minnesota Secure Choice Retirement Plan, a state-administered retirement savings plan for public and private workers without access to retirement plan at work.
Ghilarducci presented SCEPA's report, 'Are Minnesota Workers Ready for Retirement,' which reports a 6% decline in employer-sponsorship of retirement plans in the state. The research supports the implementation of policies that help workers gain access to safe, affordable and efficient retirement savings vehicles to prevent downward mobility among seniors.
One of the most important aspects of the Minnesota Secure Choice Retirement Plan is that it is safe and cost-effective. The MN Secure Choice plan would facilitate voluntary employee contributions through a simple payroll deduction, rather than complicated private retirement plans that require participants to shoulder the risk and responsibility of finding and paying for the right financial advisor and/or choosing the appropriate investment options. Other advantages include pooled investments, diversified investment portfolio and access to professional money management firms.
- Published on Tuesday, April 08, 2014
This week's Worldly Philosopher, Katherine Moos, writes on austerity and the social safety net.
In the wake of the financial crisis, we have witnessed a number of policy measures that have increased the financial fragility of workers by cutting benefits and social safety net programs. In the United States, there have been repeated calls to cut Social Security – by raising the retirement age or by adjusting benefits to the Chained CPI – legalese for cuts in entitlements that would have disastrous effects, especially for the poor.
However, at the most unlikely time, there have also been calls to expand Social Security benefits. Last year, Senator Harkin (D-IA) introduced legislation that would link benefits to the consumer price index for elderly consumers, CPI-E, that factors in additional costs faced by retirees such as higher healthcare expenses. The bill garnered the support of Senators Brown (D-OH), Begich (D-AK), Schaltz (D-HI), and Warren (D-MA). Congress Member Sanchez introduced the House version of the bill in September, which has since obtained 55 co-sponsors. While neither version has moved in Congress, this legislation seems to have emboldened other members to push for progressive reforms.
More recently, the Congressional Progressive Caucus (CPC) introduced its "Better Off Budget" for fiscal year 2015. It includes a number of fiscal policy measures that signal support for expanding Social Security. CPC Co-Chairs, Representatives Raúl M. Grijalva (D-AZ) and Keith Ellison (D-MN), issued a statement that the Better of Budget "reverses the damage [that the] austerity agenda has inflicted on hard-working families." The budget would create 8.8 million jobs, repeal the sequestration cuts, change the tax code to create tax relief for low and middle-income working families, and expand retirement and health benefits. The budget is also estimated to reduce the federal deficit by more than $4 trillion in 10 years.