- 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.
This week's Worldly Philosopher, Julia M. Puaschunder, describes how meritocracy enables intergenerational mobility to foster equitable societies.
Thomas Piketty's Capital in the 21st Century is about societal inequality, but it also raises important questions about social mobility.
Inequality occurs in immobile societies. If individuals cannot advance based on education, work and natural skills, societal status depends on their parents' wealth, income and networks. An Organisation for Economic Co-operation and Development (OECD) Economic Policy Reform Report finds a significant relationship (r=.56, 88, p<.05) between inequality and wage distribution by measuring the gap between the wages of those with fathers with and without any higher education. The Great Gatsby Curve connects wealth in one generation with the ability to move up the economic ladder in the next generation. As you can see, children from poor families are less likely to improve their economic status in countries where income inequality is higher.
by Rick McGahey, SCEPA Faculty Fellow
This morning's April employment report shows a U.S. economy with continuing weaknesses, underscored by other economic data indicating that first quarter GDP may actually have declined. The economy added 233,000 jobs, with a stagnant unemployment rate of 5.4% and a continuing historically low labor force participation rate. But jobs numbers for February and March also were revised, showing 39,000 fewer jobs than previously reported. That puts the three-month rolling average for job creation below 200,000 per month.
The weak jobs number must be viewed in relation to other data suggesting a weakening economy. In March, the dollar hit a 40-year high against the Euro and has been strengthening against almost all other currencies, hurting U.S. exports and leading to a March trade deficit of $51.4 billion, a six-year high.
Some of the dollar's growth has been driven by expectations of Federal Reserve interest rate increases, but today's employment report is another signal that the Fed should hold its fire. This is a weak economy that is going nowhere fast, and increasing interest rates could tip it into recession, or at least lock us into stagnation. We are now in the 70th month of the (very weak) economic recovery, much longer than the post-World War II average of 58 months.
In the labor market, working hours and wages aren't growing, another signal of overall economic weakness. Hours worked in April didn't increase, and average hours in the private sector are exactly the same as one year ago. And average hourly earnings increased by only 3 cents in April, for a 2.2% increase over the past year.
These are not strong labor market numbers.
All eyes are on Paris. The United Nations is working to secure a historic, legally binding international climate change agreement at its December meeting of the UN Framework Convention on Climate Change (UNFCCC) in the City of Lights.
But the negotiations have already begun. Governments are submitting their mitigation and adaptation plans. Scientists put forward a statement on the essential elements of a plan. And in May, Paris will host a climate summit with business interests. The anticipation for an agreement is building, and so is the pressure on the UN. How will they make the promise a reality?
Selwin Hart, Director of the UN Secretary-General's Climate Change Support Team, joined SCEPA on May 11th to present, "The Road to Paris and Beyond: Creating a Climate Change Agreement that Works." Hart shared his insider point of view on the UN's efforts to mobilize the support necessary to secure an agreement. He will also share the UN's vision to ensure it works, including a framework for a multilateral, rules-based climate regime.
The lecture was followed by a presentation on "The Oxford Handbook of the Macroeconomics of Global Warming" by SCEPA Faculty Fellow Willi Semmler and New School economic alumnus Lucas Bernard, Professor of Business at CUNY's College of Technology. The handbook analyzes the economic impact of global warming and how the responses to it - including preventative measures, adaptation policies and international agreements - affect growth, sustainability and society. With articles from over 50 different scholars, it considers how these consequences differ between developed and developing nations.
The event was hosted by SCEPA's Economics of Climate Change Project, led by New School Professor of Economics Willi Semmler, and is generously supported by the Fritz Thyssen Foundation and the Macroeconomic Policy Institute (IMK).