Tag Archives: skills

Why We Need To Raise Taxes, Not Reduce Them


President Trump’s tax bill includes provisions to reduce tax rates on corporations, “pass-through” entities, and wealthy individuals, and removes the alternative minimum tax and estate tax. For the good of the country, particularly now, I believe we should raise ― not reduce ― those tax rates.

The additional revenue from these tax increases should be used to fund an American Dream Opportunity Trust Fund, an independent non-partisan entity charged with making American dream opportunities a reality for all citizens. This organization should be headquartered outside of Washington, D.C. and audited by the Office of Management and Budget.

This is an urgent […]

OECD: Youth Likely to Face Higher Inequality in Old Age

OECD: Youth Likely to Face Higher Inequality in Old Age

Y ounger generations have been experiencing more unstable labor market conditions and widening inequalities, the Organization for Economic Cooperation and Development said on Wednesday.

This contributes to widening inequality in old age, while socio-economic disparities in health status remain large, Anadolu Agency quoted OECD as saying.

“Ageing unequally is detrimental to future economic growth, particularly where inequality of opportunity locks in privilege or exclusion, undermining intergenerational social mobility and jeopardizing social cohesion,” the report said.Defining ageing as an unequal phenomenon that develops throughout the life course and materializes in old age, it said: “It is often the result of specific episodes […]

Is parental satisfaction enough?


Editor’s note: This is an excerpt from “ Is School Choice Enough? ,” the lead article in the fall issue of National Affairs .

As with so many issues—from trade and immigration to Russia and taxes—the Trump presidency has exposed a schism within the conservative movement when it comes to education policy. While expanding parental choice is a paramount objective on the right, a key question is whether choice alone is enough, or if results-based accountability ought to be sustained and strengthened, too. How this question is resolved will have wide-ranging consequences—for education reform in general and for the […]

William C Dudley: The monetary policy outlook and the importance of higher education for economic mobility

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Central bankers’ speeches Remarks by Mr William C Dudley , President and Chief Executive Officer of the Federal Reserve Bank of New York, at the Council for Economic Education’s 56th Annual Financial Literacy & Economic Education Conference, New York City, 6 October 2017. Good afternoon. It is a pleasure to have the opportunity to speak at this Council for Economic Education (CEE) event, marking the CEE’s 56th Annual Financial Literacy and Economic Education Conference. Given the hard lessons of the financial crisis-and the economic challenges still facing many Americans-there are few […]

India needs to create greater economic opportunities for all

By Maitreesh Ghatak

Thomas Piketty’s 2014 book, Capital in the 21st Century, which documents the rise of sharp income inequality in the developed world since the 1970s, became an unlikely bestseller for an academic book dense with facts and figures. In a recent article with Lucas Chantel, Piketty has turned his gaze on India (‘Indian Income Inequality, 1922-2014: From British Raj to Billionaire Raj?’, goo.gl/gbPEde).

Combining income-tax data with household surveys and national accounts, Piketty and Chantel track income inequality from 1922, when the income tax was introduced by the British colonial government, to 2014.Leaving aside measurement issues, their key […]

New Study: Education Is Important, But It Is Not the Key to Economic and Social Mobility

Rachel M. Cohen writes in The Atlantic about a new study by Jesse Rothstein, showing that education is important but it is not the key to economic and social mobility.

She writes:

“A new working paper authored by the UC Berkeley economist Jesse Rothstein builds on that research, in part by zeroing in on one of those five factors: schools. The idea that school quality would be an important element for intergenerational mobility—essentially a child’s likelihood that they will one day outearn their parents—seems intuitive: Leaders regularly stress that the best way to rise up the income ladder is to go […]

Education Isn’t the Key to a Good Income

A man climbs a ladder.

One of the most commonly taught stories American schoolchildren learn is that of Ragged Dick, Horatio Alger’s 19th-century tale of a poor, ambitious teenaged boy in New York City who works hard and eventually secures himself a respectable, middle-class life. This “rags to riches” tale embodies one of America’s most sacred narratives: that no matter who you are, what your parents do, or where you grow up, with enough education and hard work, you too can rise the economic ladder.

A body of research has since emerged to challenge this national story, casting the United States not as a meritocracy […]

Growth that reaches everyone: facts, factors, tools

Growth that reaches everyone: facts, factors, tools

Economic growth provides the basis for overcoming poverty and lifting living standards. But for growth to be sustained and inclusive, its benefits must reach all people.

While strong economic growth is necessary for economic development, it is not always sufficient.

Over the past few decades, growth has raised living standards and provided job opportunities, lifting millions out of extreme poverty. But, we have also seen a flip side. Inequality has risen in several advanced economies and remains stubbornly high in many that are still developing. This worries policymakers everywhere for good reason. Research at the IMF and elsewhere makes it clear […]

The century gap: Low economic mobility for black men, 150 years after the Civil War

Social-Mobility

The legacy of American racism is dominating the headlines again. One of the arguments used against the removal or relocation of Confederate symbols is that “it is simply part of our history”. This is not the case. The results of the enslavement, disenfranchisement and exclusion of black Americans remain visible and vivid in 21st century America.

Take the economic gap between black and white Americans, which is stark and stubborn. Black median household income was $36,898 in 2015, compared to $62,950 for whites . The gap has actually widened slightly since 2002 (from $23,500 to $26,000).

The black-white income gap obviously […]

Education Isn’t the Key to a Good Income

A man climbs a ladder.

One of the most commonly taught stories American schoolchildren learn is that of Ragged Dick, Horatio Alger’s 19th-century tale of a poor, ambitious teenaged boy in New York City who works hard and eventually secures himself a respectable, middle-class life. This “rags to riches” tale embodies one of America’s most sacred narratives: that no matter who you are, what your parents do, or where you grow up, with enough education and hard work, you too can rise the economic ladder.

A body of research has since emerged to challenge this national story, casting the United States not as a meritocracy […]