Jeff Faux

Jeff Faux is a distinguished fellow at the Economic Policy Institute, which he founded. His latest book, The Servant Economy (Wiley), was published in June 2012.

Recent Articles

The Next Recession

A decade of prosperity has convinced a fair portion of the punditry that the new hi-tech service economy has lifted us into an economic orbit beyond boom and bust, where recessions are history. Unfortunately, there is little evidence that the laws of economic gravity no longer apply. Indeed, sensible people should now be preparing for the possibility that Alan Greenspan's effort to slow down the economy will overshoot and that we will soon face rising unemployment and a sinking stock market. To begin with, the length of the current expansion is less a product of some epochal transformation of the American economy than it is of the convergence of temporary economic trends and political events whose influence may have run its course. During its first five years, the current upturn was at best ordinary. After having fallen in 1991, the GDP rose at an average of a little above 3 percent annually through 1996, about the same as the previous two expansions and considerably less than earlier...

Three Things We Learned

There is no silver lining to the cloud of horror that descended on America last week. And the avalanche of pain, terror, and death we have witnessed may be just the beginning. But life, as always, slowly picks up and moves on. Despite the nagging sense that it is unseemly to begin thinking about the economic consequences, the country is once again back in the market. Investors are selling the stocks of insurance companies and airlines, buying those of military contractors and companies that will benefit from the new security-conscious society. Economists are calculating the gains and losses and guessing about the odds of a recession. Many are engaged in burying the dead and tending to the survivors, or facing the awesome responsibility of satisfying the national demand for action that serves justice rather than multiplying evil. Those of us who are going back to business have an obligation, as we do, to reflect on what we have seen. The attacks of last Tuesday revealed some truths...

The North American Way

T here is no silver lining to the cloud of horror that descended on America September 11. Many are engaged in burying the dead and tending to the survivors or facing the awesome responsibility of satisfying the national demand for action that serves justice rather than multiplying evil. Those of us who are going back to "business as usual" have an obligation, as we do so, to reflect on what we have seen. The September 11 attacks revealed some truths about the American political economy that have been obscured in recent years. One is just how much of our economy is made up of what used to be called the "working class"--the nonsupervisory, non-college-educated people who make up 70 percent of our labor force. For the last half-dozen years, the media saw economic trends through the eyes of the glamorous, globe-trotting business executive--to the point that many people abroad must think the corporate elite represent the vast majority of American workers. And one could hardly find a more...

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