SEARCH: Economic Strategy Group

Bringing Jobs to People: Improving Local Economic Development Policies

SUMMARY Even before the current recession, local labor markets across the U.S. had large and persistent disparities in employment among prime-working age adults. Roughly 15 percent of the U.S. population, totaling 47 million people, lived in areas with employment rates at least 5 percentage points below the national average. In this Economic Strategy Group memo, […]

The Need to Expand Economic Opportunity

  The pursuit of economic opportunity for all Americans is as important to the health of the country’s economy as it is to the strength of its democracy. The promise that hard work and determination will yield economic success is a central American ideal, but it has been called into question as secular economic forces […]

Maintaining The Strength of American Capitalism

The American economic system has always been the foundation of our national strength. But this foundation is showing cracks—from high levels of income inequality, declining economic mobility, and persistent economic insecurity among low- and middle-income Americans.

Policy Options for Taxing the Rich

Overview: Batchelder and Kamin argue the United States must raise new revenue in order to reduce high levels of economic disparity, finance much-needed new services and investments, and address the nation’s long-term fiscal needs They present a range of options that would raise tax revenue and increase the progressivity of the federal tax system. Policymakers […]

Economic Strategy for Higher Wages and Expanded Labor Participation

  We propose two alternative policy options for promoting increased earnings and employment of low-income households: expanding the Earned Income Tax Credit (EITC) among childless workers, and implementing a wage subsidy for low-income workers that would be administered through employers. The EITC is based on household income and administered as a tax credit, while the […]

The Higher Wages Tax Credit

  In the face of continued low employment, stagnant wages, persistent poverty, and rising inequality, minimum wage increases will likely continue to hold appeal as a policy response. In this paper, I propose a Higher Wages Tax Credit (HWTC) to partially offset the costs imposed by minimum wage increases on firms that employ low-skilled labor. […]

Fiscal Policy With High Debt and Low Interest Rates

Overview: The U.S. budget trajectory is in uncharted territory. The country faces a structural deficit, accrued the largest increase in debt on record during the current economic recovery, and is expected to surpass its WWII-era debt-to-GDP record of 106 percent within the next 30 years. Gale argues that although historically low interest rates reduce the […]

Taskforce Report: Promoting Economic Recovery After COVID-19

The federal government’s fiscal and monetary responses to the economic crisis caused by the COVID-19 pandemic have been unprecedented. However, we argue that as many of the enacted fiscal measures begin to expire over the next two months, continued policy action will be needed to promote economic recovery. This report puts forward a set of […]