Fed Chairman Jerome Powell and other top policymakers need to stop blaming educational differences for rising income inequality.
ising perceived returns to education cannot explain the runnaway spike in earnings at the very top, or stagnation for the rest.
Rather economic policies aimed at suppressing labor unions, regressive tax policies that favor the super wealthy and the rise of tax havens to where the rich can shield their cash from taxation are among the factors aggravating inequality. As long as Powell and other key policymakers overlook that reality, they will continue to say there is nothing the Fed and other institutions can do to address the issue of inequality. More proactively combatting money-laundering and other white-collar crime, which is totally within the Fed’s purview, would seem like a solid start.is stashed away in tax havens.
"Despite its great popularity and intuitive appeal, this story about recent wage trends driven more and more by a race between education and technology does not fit the facts well, especially since the mid-1990s," wrote Gould in blogpost. "The growing inequality of note is that between the top and everyone else. The pulling away of the very top cannot be explained by education differences, but rather the escalation of The chart below illustrate the phenomenon—educational attainment has clearly not been a major contributor to rising inequality.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Analysis: Fed Chairman Jerome Powell Shows His Flexible SideFlexibility is emerging as the hallmark of Jerome Powell’s response to the first economic curveball he has faced during his tenure as Federal Reserve chairman, writes Nick Timiraos.
Read more »
Dallas Fed President: Too Soon for Fed to Consider Cutting RatesSome Federal Reserve officials are saying it is too soon to consider cutting U.S. interest rates, despite rising market speculation of such a move because of slowing global growth.
Read more »
Trump to nominate Fed critic Stephen Moore to the FedThe conservative economist previously served as a Trump 2016 campaign adviser and is currently a visiting fellow at the Heritage Foundation.
Read more »
Trump nominates Federal Reserve critic Stephen Moore to serve on its boardConservative economist Moore served on Trump's 2016 campaign and recently penned an op-ed that concluded it was 'time for a new pilot at the Fed.'
Read more »
Likely Fed nominee Stephen Moore thinks rates should be cut by half a percentage pointThe Heritage Foundation fellow backed off on earlier criticism he had for the Fed and specifically its chairman, Jerome Powell.
Read more »
Here's how Trump decided to nominate Stephen Moore to the Fed – and what it means for Jerome PowellDespite both Trump and Moore's skepticism of the Fed, Powell's job as Federal Reserve chair appears safe for now.
Read more »
Stephen Moore says he doesn't want to disrupt Fed, says call to fire Powell was written 'in anger'Stephen Moore, who President Trump on Friday said he would nominate to the Federal Reserve, said in an interview he will be an 'independent voice.'...
Read more »
Trump takes politics to heart of Fed with nomineeThe president wants to put conservative commentator Stephen Moore on the central bank board. The former campaign aide helped draft the administration’s tax cuts and has called for Fed Chairman Jerome Powell to resign. It’s a troubling shift from more expert, independent choices.
Read more »
Why Stephen Moore is unfit for the FedStephen Moore holds some views that amount to a rejection of mainstream macroeconomics
Read more »