While the trend toward greater inequality is no longer in doubt, recent work in the social sciences suggests a number of possible explanations. We can now begin to sort them out.
Economic Policy
Bank Failure: The Financial Marginalization of the Poor
In poor areas across the country, banks have been replaced with check-cashers and pawn shops. While both liberals and conservatives extol the virtues of savings, the recent trend encourages just the opposite.
What I Really Say about Balancing the Budget
However you look at it, America is failing to prepare for its economic future. Each decade our savings performance worsens, and each decade so do our prospects for higher living standards. During the 1960s, U.S. net national savings averaged 8.1 percent of GDP. During the 1980s, that rate fell by half (to 3.9 percent). Thus […]
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.
The False Messiah: Pete Peterson’s Revelations Are Not Gospel
Virtually without challenge, Pete Peterson claims to be a champion of the middle class. But his proposals would actually cut taxes for the rich and benefits for middle-income people.
Self-Fulfilling Prophets: Inflated Zeal at the Federal Reserve
Greenspan’s rate increases needlessly threaten to abort the recovery. A more accountable central bank is long overdue.
The New Crusade for the Old Family
A new wave of family restorationists says that the evidence on families is in and that the remedies are clear. Their case doesn’t hold up.
Seismic Stimulus: The California Quake’s Creative Destruction
The earth literally had to move to jolt Congress into passing a stiumulus package — and to lift California out of recession.
The New Dialectic
Modern economic life crosses national boundaries to form a web of intricate association that retards aggressive and regressive nationalism. Trade, investment, enterprise, technology, communications, and travel are today relentlessly transnational. Yet this same globalism undermines the capacity of the nation-state to stabilize its economy. From this paradox comes the first of the dialectics of our […]
Talent and the Winner-Take-All Society
Rising inequality reflects the growing importance of winner-take-all markets.


