Sunday, August 6, 2017

Tom Streithorst — How to Use Fiscal and Monetary Policy to Make Us Rich Again

Speaking the unspeakable.
During the post war Golden Age, from 1950 to 1973, US median real wages more than doubled. Today, they are lower than they were when Jimmy Carter was President. If you want an explanation why Americans are pessimistic about their future, that is as good a reason as any. In a recent article, Noah Smithexamines the various causes of the slide in labor’s share of national income and finds most explanations wanting. With a blind spot common amongst economists he doesn’t even investigate the most obvious: politics....
Neoliberalism replacing Keynesianism, and monetary policy replacing fiscal policy.

Time for  reset.


1 comment:

Matt Franko said...

No mention of external deficit, ERISA, and immigration over same time period....