We are at a crucial moment in our economic history. Thirty-five years of rising economic inequality and wage stagnation have left too few Americans benefiting from economic growth. While GDP per person has risen strongly, median household incomes have been left behind. This economic record has fueled economic discontent and the search for easy answers. The Trump administration’s response has primarily been to blame our trading partners and immigrants, raising barriers and walls.
Summary.
Trade barriers and immigration restrictions create large collateral damage; such “cures” are worse than the disease. If economic nationalism is not the answer, what is? We need better policies for supporting workers and communities, as well as true tax reform that ensures the gains from economic growth are more widely shared. We also need to modernize the tax system to suit our global, technologically sophisticated economy. Beyond these steps, we need to rethink society’s partnership with the business community. Our aim should be to balance the needs of business with those of society, recognizing their mutual interdependence.