By Karen Petrou and Matthew Shaw
Yesterday, FRB Vice Chairman Clarida said that the U.S. economy is in “in a good place.” However, The Fed’s new study of American economic “well-being” shows that huge swaths of the United States are struggling harder than ever before to make ends meet. All but the most affluent Americans asked about how well they’re doing don’t feel anywhere near that good about it. Combine this with new data on the evaporating American middle class and an ugly picture quickly merges. In it, the prosperity in which the Fed takes such comfort rests thinly atop millions – indeed a hundred plus million – of Americans who are barely getting by at the height of the business cycle following a record-breaking “recovery.” No wonder that so many Americans remain so angry about their economic prospects and why political polarization is sure to define the 2020 election at least as much as it determined 2016’s outcome.
Continue reading “The Good, the Bad, and the Ugly in American Well-Being”
By Karen Petrou and Matthew Shaw*
Like most who assess U.S. economic inequality, we’ve focused in this blog on the way income and wealth divide across Americans in general, by race, by age, by gender, by ethnicity, and even by nothing more than where one lives. However, working on another pro bono initiative – this time to speed biomedical research – it’s dawned on us that there’s another major factor that divides the haves from the have-nots that’s even less the result of individual action than all these well-studied demographic criteria: disability. Continue reading “If You Really Want to Be Unequal, Be Disabled”
By Karen Shaw Petrou
On Tuesday, FRB Chairman Powell delivered a strongly-positive statement on the state of the U.S. economy. Citing factors such as recent wage growth and employment, Mr. Powell is far more worried about keeping the good times going than about how inequitably the good times deliver the goodies across the gaping U.S. income and wealth divide. This is setting monetary and regulatory policy the same way a diver looking only at a calm, blue surface jumps into a lake and breaks his neck. Continue reading “Still Economic Waters Hide Lurking Danger”