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

Is The American Economic Model the Answer?

The financial elites that favor the "American" model -- deregulation, weak unions, and a minimalist welfare state -- ask the wrong question: how to compete against countries with lower wages and living standards.

N ot too many years ago, the conventional wisdom was that Europe and Japan did it all right, and the United States did it all wrong. And everything that could be learned, we could learn from them, and indeed, they had nothing to learn from us. Now, the new conventional wisdom is just the opposite; we're doing everything right, and Europe and Japan are doing everything wrong. Neither of those positions is correct. -- Secretary of Labor Robert Reich, Detroit Jobs Conference, March 14, 1994. T he economic elites of most advanced nations now believe that the United States offers the best model for competing in the new global economy. As commonly formulated, the argument holds that, compared with Europe, the United States has: Created more jobs. Thus, according to a recent commentary in the Washington Post: The record is unmistakably clear. Since 1970 the U.S. economy has generated 41 million new jobs. . . . By contrast, the European Union -- the new name for the European Community -- has...

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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