We recently solicited your questions for Alan Krueger, chairman of the President’s Council of Economic Advisers. Below are Krueger’s answers, in which he talks about the Bush tax cuts, the American Jobs Act, and why NFL coaches should go for it on fourth down. Thanks to everyone for participating.
Q. The recovery from the recent recession has been great for corporate profits, but not so great for employment. I think that this is a natural result of the fact that when demand is insufficient, corporations focus on improving productivity rather than on producing more goods and services.
What can be done to increase employment? -Adam Read More »
Last Monday, Aaron Edlin and I published a cri de coeur op-ed in the New York Times calling for a Brandeis tax, an automatic tax that would put the brakes on income inequality. This is the third in a series of posts (the first and second posts are here and here) explaining more about our rationale and providing more details on how a Brandeis tax might be implemented. You can also listen to my hour-long interview on Connecticut Public Radio’s “Where we Live” here.
Of Lags and Caps: More Details About Possible Implementations of a Brandeis Tax
By Ian Ayres & Aaron Edlin
Remarkably of the hundreds of emails we received in reaction to our op-ed, almost no one questioned Brandeis’s idea that we can have great concentrations of wealth, or democracy but not both. People questioned other aspects of our proposal, asking questions like (1) how would it work in a world of income bunching; (2) would people still have the incentive to work hard; and (2) is it fair to have very high tax rates on the affluent.
On Monday, Aaron Edlin and I published a cri de coeur op-ed in the New York Times calling for a Brandeis tax, an automatic tax that would put the brakes on income inequality. In the next few days, Aaron and I will be publishing a series of posts explaining more about our rationale and providing more details on how a Brandeis tax might be implemented.
There Will Be Rich Always
By Ian Ayres & Aaron Edlin
The same is true of the rich. There will always be a top 1 percent of income earners. But what it takes to be rich can change drastically over the course of even a single generation. In 1980, you would have had to earn at least $158,000 to be a one-percenter; but by 2006 the qualifying amount had more than doubled to $332,000. (You can produce an estimate of your own household income percentile – albeit using a different definition of income that produces a much higher 1 percent cutoff – at this wsj.com site.) The rise is not due to inflation as both these numbers are expressed in inflation-adjusted, constant 2006 dollars. Read More »
Searching for the perfect gift for the health care reform junkie in your family? A new graphic novel by Jonathan Gruber (out on Dec. 20) may be just what you’ve been looking for. The book, Health Care Reform: What It Is, Why It’s Necessary, How It Works, has been gestating for awhile, and aims to explain the complicated legislation. Here’s an excerpt from the Amazon book description:
You won’t have to worry about going broke if you get sick.We will start to bring the costs of health care under control.And we will do all this while reducing the federal deficit.
In the interest of full disclosure, it should be noted that Gruber served as an Obama advisor during the 2008 campaign and may not be the most unbiased of observers.
(HT: Marginal Revolution)
A new paper (PDF here) by Seth Stephens-Davidowitz, a Harvard Ph.D. economics student, attempts to measure whether “racial animus” cost Barack Obama votes in 2008. Using location-specific Google searches for racial epithets collected on Google Insights, and comparing Obama’s 2008 performance to John Kerry‘s in 2004, the study concludes that racism cost Obama 3 to 5 percentage points in the popular vote. Read More »
In a Time magazine Q&A, the actor gives a fascinating reply to the question “Are you disappointed in Obama”:
I get angry at people who don’t stand for him, actually. If this were a Republican president, Republicans would say, “We were losing 400,000 jobs a month. We stopped it. We saved the car industry.” You could go down the list. Democrats should talk to Hollywood about how to posture some of these things. Say you’re about to get into tax loopholes. Instead of “loopholes,” say “cheating.” And then on the floor of the Senate, get up and say, “We’re not going to raise your taxes, but we’re not for cheating. Are you?” I just think Democrats are bad at that.
A few points: I assume the “people” he gets angry at for not standing for Obama are Democrats? If not … well … hard to imagine someone like Clooney getting angry at Democrats who didn’t “stand for” Bush.
Great point re the job loss and car industry! Perhaps not nearly 100 percent accurate, but still, a great point re how those accomplishments haven’t been framed as successes. Read More »