What matters more--the productivity slowdown or the inequality increase?
The Economic Report of the President was released today. A friend draws my attention to Table 1-3 on page 34, which presents several historical counterfactuals. It finds:
1. If productivity growth had not slowed after 1973, the median household would have $30,000 of additional income today.
2. If income inequality had not increased after 1973, the median household would have $9,000 of additional income today.
So, which is the bigger problem? (Of course, neither has an easy solution.)
1. If productivity growth had not slowed after 1973, the median household would have $30,000 of additional income today.
2. If income inequality had not increased after 1973, the median household would have $9,000 of additional income today.
So, which is the bigger problem? (Of course, neither has an easy solution.)
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