We’re In This Together

Jared BernsteinCenter on Budget and Policy Priorities

Presentation to CA Labor FederationUnemployed in America: Causes,

Consequences, Solutions3/14/12

bernstein@cbpp.org

Source: Inclusive Fitness in Evolution, Ferriere and Michod, 2011.

Does This Map Onto Economic Policy?

• Growing Together, Growing Apart

• Do American Corporations need American Consumers?

• Exports/Profits

• Jobless Recoveries

• Fiscal Policy, Public Infrastructure, Education

• Political Dysfunction!

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The Lower Your Income, the More Full Employment Helps You

CA

Dependent Var: Change in State Unemp Rates

Coef t-stat R-Sq

Neg Eq Sh 0.10 6.33 0.49

Union Cov 0.00 0.03 0.49

How Do We Get Back on Track, 1?

• Emphasize “Relatedness,” Not YOYO’ism

• Implications:

--insourcing

--stronger fiscal positions (new revenue)

--collective bargaining

--full employment

--commitment to public infrastructure and education

• Opportunity for all!

Dif=0.45

Dif=0.31

12From Baily, Dynarski, Chapter 6, Whither Opportunity

Back on Track, #2

• Campaign finance reform• Efficient gov’t sector (inefficient gov’t also reinforces cycle)• Clear-eyed look at what’s coming and how that relates to

role of gov’t (demographics, climate, innovation, global connectedness)

• Much more intensive research and outreach agenda re trickle down, deregulatory failures

• Political dysfunction should scare people (debt ceiling)• Remember compromise?• Research is important but equally important is how we

explain, disseminate it• Fairness, common sense, YOYOs vs WITTs

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