The Democrats’ Davos ideology won’t win back the midwest

The tragedy of the 2016 election is connected closely, at least for me, to the larger tragedy of the industrial midwest. It was in the ruined industrial city of Cleveland that the Republican Party came together in convention last July, and it was the deindustrialized, addiction-harrowed precincts of Ohio, Pennsylvania, Michigan, and Wisconsin that switched […]

Navigating the New Abnormal

The Populist Backlash SS: You’ve written that Brexit and Trump are the same phenomenon. Do you think the populist wave that lifted both will spread further? JS: I think societies everywhere are very divided. Whether it’s 51-49 or 49-51, we are not seeing landslide wins for populism, but rather a reflection of deep social divisions. […]

Inequality Update: Who Gains When Income Grows?

(Refer to full article for chart.) The chart illustrates that with every postwar expansion, as the economy grew, the bottom 90% of households received a smaller and smaller share of that growth. Even though their share was falling, the majority of families still captured the majority of the income growth until the 70s. Starting in […]

Inequality in the US: A Tale of Two Countries

The rise of economic inequality is one of the most hotly debated issues today in the US (Furman 2016) and indeed in the world. Yet economists and policymakers alike face important limitations when trying to measure and understand the rise of inequality. One major problem is the disconnect between macroeconomics and the study of economic […]