Since China joined the WTO, the number of jobs in the U.S. manufacturing industry has been decreasing. The Economic Policy Institute estimates that the trade deficit with China cost about 2.7 million jobs between 2001 and 2011, including manufacturing and other industries.
A study of the workforce released by the Economic Policy Institute (EPI) delineates 1979 as the point where significant changes started to accelerate a large chasm between workers and wages. Whereas the mid-20th century reflected a time of advances for working class Americans, “The decades since 1979 have been characterized by erosion of the minimum wage and overtime-pay standards, a decline in unionization and cultural and political acceptance of excessive executive pay.”
Penalties for companies wrongfully terminating pro-union employees are “just pathetic”, said Oliver. A company might be forced to provide backpay, “but that on its own is a pretty small price for them to pay if it helps them crush a union”.
Teresa Ghilarducci is the Schwartz Professor of Economics at the New School for Social Research. She’s the co-author of “Rescuing Retirement” and a member of the board of directors of the Economic Policy Institute.
The wage gap between teachers and the rest of the comparably educated workforce was about 21% in 2018. That disparity was a much smaller 6% back in 1996, according to an analysis from the Economic Policy Institute.
As of mid-October, only three of 12 Midwestern states had used relief dollars for extra employee pay, according to an analysis from the Economic Policy Institute. But a handful of other municipalities in California, including the cities of San Carlos and San Mateo, approved similar measures earlier this year.
The companies’ complaints about increases in raw material and shipping costs may or may not be genuine, but it’s certainly plain that they’ve used talk about inflation to raise prices more than their cost increases warrant. That shows up in the government’s inflation numbers, without explanation.
The result is what economist Josh Bivens of the labor-oriented Economic Policy Institute calls the “unwarranted leap” of attributing the recent price spikes to “ ‘too much’ fiscal relief and recovery.” There’s no evidence that merely providing more assistance to ordinary households caused inflation and therefore should be abandoned.
More than half of Black households have no retirement savings at all, compared with less than a third of white households. The median retirement savings for a white household between ages 25 and 61 is $79,500, while Black households have $29,200, according to research by the Economic Policy Institute and others.
For decades, mandatory anti-union meetings have been a common tactic employers use to crush support for union drives. In fact, 89 percent of employers use captive audience meetings during union drives, according to the Economic Policy Institute.
Decades-long trends show that the top earners in telecoms have steadily siphoned off larger portions of money from the share leftover for lowest-paid cable workers. Government data analyzed by the Economic Policy Institute shows that, from 1973 to 2019, the industry’s top earners saw a 161% wage increase, while workers in the bottom bracket saw a 12% overall decrease.
“I would expect over the next year the price inflation to relent a bit, and most of the wage growth to stay — and so I think they’re going to come out ahead,” said Josh Bivens, director of research at the left-leaning Economic Policy Institute. “But yeah, this inflationary spike has definitely bit into the growth of paychecks.”
Researchers at the Economic Policy Institute extrapolated from these trends, finding that the elimination of federal unemployment expansions caused an estimated $144.3 billion loss of income and a $79.2 billion decline in consumer spending nationwide. The loss of personal income from curtailing pandemic unemployment benefits contributed to slowing national GDP growth in the third quarter of 2021, according to the U.S. Department of Commerce Bureau of Economic Analysis.
The Economic Policy Institute (EPI) earlier this month announced the legislation would create that many jobs each year over the first five years of its implementation. That would raise the financial fortunes of millions of working Americans trying to support their families.
“Anything that in the very short run puts a lot of pressure on family budgets across the board will cause more stress and damage to low-income households because they just have less scope to absorb it,” said Josh Bivens, director of research for the Economic Policy Institute.
Adewale Maye, an analyst at the progressive Economic Policy Institute, said provisions in the reconciliation package on education, health care and child care “could have a very large impact on poverty reduction and have a disproportionate impact on Black and brown families.”
Using different methodology, Adam Hersh, a visiting economist at the liberal Economic Policy Institute, recently calculated that over the first five years of implementation the infrastructure plan would create nearly 775,000 jobs annually, while the Build Back Better plan would add about another 2.3 million jobs a year. Hersh also projects that more than 80% of the infrastructure plan’s new jobs would not require college degrees, while non-college jobs would compose almost exactly four-fifths of those created by the broader plan.
“It’s fair,” says Elise Gould, a senior economist at the Economic Policy Institute, whose own family budget calculator helped to inform For US. “There is integrity to the whole process,” adds Gould, who crunched data for Murray and will continue to partner going forward.
The average American two-parent household with with two young kids devotes about 25 percent of its income to childcare, according to an Economic Policy Institute analysis. In Texas, full-time child care for a 4-year-old is nearly equal to tuition at a public college.
According to the Economic Policy Institute, the compensation for CEOs have grown by 1,322% since 1978. At the same time, the compensation for a typical worker has grown 18%. This kind of gap cannot be unnoticed and we should discuss why such inequality exists today.
Elise Gould, senior economist at the Economic Policy Institute, said it’s “stunning” that from August to September, this sector nearly doubled in quit rate, although she cautioned that part of it may be statistical noise that may be revised in the coming months.
By that standard, less than 11 percent of Pennsylvania families can afford infant care, which the Economic Policy Institute said costs an average of $987 per month, or $11,842 a year. The cost of care for a 4-year-old is nearly as high, at $9,733 per year.
The Commonwealth Institute used the Economic Policy Institute’s family budget calculator to determine the income needed for a “modest yet adequate” standard of living. The Economic Policy Institute takes into account housing, food, transportation, taxes and other necessities such as clothing, phone service, reading materials and furniture.
While the national unemployment rate is down to 4.6% as of October, that’s not true for all groups, according to estimates for the third quarter from the left-leaning Economic Policy Institute, a Washington, D.C.-based think tank. Black workers still face double-digit unemployment in Illinois (10.8%) and California (10.4%), and Hispanic unemployment in New York is 10.7%.
As the Economic Policy Institute has shown, these Minneapolis Fed studies have multiple flaws. For example, they fail to take into account the pandemic. Unemployment claims in the third week of March 2020 went up over 2,700% from the week before, yet the Fed chose to include the first three months of 2020 in their analysis. The vast majority of the full-service restaurant job losses that the study attributes to the Minneapolis minimum wage increase occurred during the pandemic and racial justice protests in 2020.
According to a report from the Economic Policy Institute, increasing wages can also reduce racial pay inequality. Data from 2019 shows that Hispanic workers are paid 11 percent less than their white counterparts, and Black workers are paid nearly 15 percent less than their white counterparts.
One answer is they’re clearly earning more: Data from the Economic Policy Institute shows a “V-shaped” wage curve that began in April 2021 has translated into a near 5% year-over-year jump in average hourly earnings. But most, if not all, of that money is being eaten up by spiking prices (over 6%, as per the latest consumer price index figures) across sectors and products.