Fiscal austerity intensifies the increase in inequality after pandemics
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(This column is reprinted with the permission of the authors. It was first published by voxeu.org on June 3, 2021) In the aftermath of past pandemics, fiscal policy played an important role in reducing or amplifying income inequality. This column predicts the likely distributional effects of Covid-1…
Average inflation targeting by the Federal Reserve and U.S. consumer expectations
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In August 2020, the Federal Open Market Committee published an amended version of its “Statement on Longer-Run Goals and Monetary Policy Strategy.” In this revised statement, the FOMC reaffirmed its 2 percent target for inflation, as first announced in January 2012, and adopted a new approach, known…
Policymakers should ensure that the U.S. labor market recovery lasts by boosting workers’ bargaining power and strengthening social infrastructure
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Many U.S. labor market indicators suggest that the United States is on its way toward a strong recovery. Over the past few months, hopeful signs are starting to emerge that workers in general, and low-wage workers in particular, are now in a better position to bargain for higher pay and better worki…
A temporary increase in inflation is not a long-run threat to U.S. economic growth and prosperity
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After a decade of below-target rates of inflation and the widespread fear of a Japanese-style prolonged economic stagnation with low inflation and zero growth, the incipient economic recovery in the United States from the coronavirus recession is suddenly turning the tables on the debate about infla…
June jobs report: What the coronavirus recession means for foreign-born workers in the United States
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June was a month of strong employment gains. According to the U.S. Bureau of Labor Statistics’ latest Employment Situation Summary, the economy added 850,000 jobs between mid-May and mid-June, well above the average month-to-month growth of 540,000 jobs of the previous 3 months. The prime-age employ…
The future of work and worker power post-COVID a key topic at the 2021 Labor and Employment Relations Association annual conference
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Last week, the Labor and Employment Relations Association, or LERA, held its 73rd annual conference. The virtual event, which took place over four days, featured more than 350 presenters from across disciplines, focusing on workers, worker power, and the workplace in a time of division and disruptio…
Sustained U.S. economic recovery depends on major equitable economic investments
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When President Joe Biden made the case before a joint session of Congress in the spring for two new economic investment packages—a $2 trillion American Jobs Plan and a $1.8 trillion American Families Plan—the question in the minds of policymakers and the American public alike was whether this new ro…
U.S. jobs report: Amid robust employment gains in May policymakers need to consider the future direction of demand-driven employment growth across industries
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The recovery in U.S. employment picked up some steam last month. According to the latest Employment Situation Summary by the U.S. Bureau of Labor Statistics, the U.S. economy in May gained 559,000 jobs, compared to the unexpectedly low 278,000 jobs added in April. While still 3.3 percentage points b…
COVID-19 lockdown policy in the United States: Past, present, and future trends
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The onset of the coronavirus pandemic and the rising death toll from COVID-19, the disease caused by the virus, initiated an unprecedented decline in consumer spending in the United States, dwarfing the effects of any previous recession. Understanding what is driving consumer spending—and, in parti…
The rising financialization of the U.S. economy harms workers and their families, threatening a strong recovery
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Overview If you are an analyst following Wall Street, things are looking pretty bright these days. The S&P 500—an index of 500 major publicly traded companies in the United States and a benchmark for gauging the health of the U.S. corporate sector—is up more than 80 percent since its low in March 20…