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Friday, August 21, 2015

Soft Bigotry of Low Expectations, U.S. Growth Version | Economic Policy Institute

Soft Bigotry of Low Expectations, U.S. Growth Version | Economic Policy Institute
 "Why does all this matter? Well, because we know that a portfolio of policy changes starting in the late 1970s contributed strongly to the rise in inequality and the near-stagnation of typical Americans’ hourly pay. And we know that this rise in inequality was the predictable outcome of these policies. But these policies are defended by their proponents as having been necessary to spur growth, distribution be damned. And yet these policies have failed really badly—growth in the post-1979 period has been a lot slower than before—leaving us with less growth and more inequality. Too many defenders then fall back on reasons why this growth would have collapsed post-1979 anyhow—and hysteria about international competition is a big part of this fall-back argument. And it’s just flat-wrong." | Economic Policy Institute

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