Federal Spending and Revenues Will Need to Grow in Coming Years, Not Shrink

Although some policymakers seek to prevent the federal government from growing, or to shrink it, federal spending and taxes will have to grow significantly as a share of the economy in the coming decades.  This is not a statement of political values; it’s a reflection of basic realities — the aging of America’s population, health […]

Who is poor in the United States? A Hamilton Project annual report

Who are the millions of people living in poverty in the United States? In 2016, 40.6 million people, or 12.7 percent of the population, lived in poverty, as defined by the official poverty measure. 6 million fewer people were living in poverty in 2016 than at the peak of 46.7 million in 2014. The official poverty […]

Should Policymakers Care Whether Inequality Is Helpful or Harmful For Growth?

Much cross-country research has found a negative relationship of inequality for growth, although results are not uniform • Some of the early contributions were Alesina and Rodrik (1994) and Persson and Tabellini (1994). Many more surveyed in Cingano (2014) and Boushey and Price (2014). • Widely cited recent contributions by researchers at the IMF and […]

Rethinking Stabilization Policy. Back to the Future

Nearly ten years after the onset of the Great Financial Crisis, both researchers and policy makers are still assessing the policy implications of the crisis and its aftermath. Previous major crises, from the Great Depression to the stagflation of the 1970s, profoundly changed both macroeconomics and macroeconomic policy. The question is whether this crisis should […]