Aug 14 2018
Real Average Hourly Wages Declined in July
Aug 13 2018
Real Average Hourly Wages Declined in July
The average hourly wage for production and nonsupervisory workers—our best measure of the median workers’ take home pay—was lower in July 2018 than it was in July 2017, after adjusting for inflation. This is the third straight month of year-to-year declines in real wages. Seven months since the Republican tax law took effect, it’s not clear how much longer American workers are supposed to wait before they see the raises President Trump promised them.
Jul 31 2018
July Economic Snapshot of the States
Although the U.S. economy overall continues its expansion following the Great Recession and associated financial crisis, the recovery can look very different from state to state. The lion’s share of economic gains are not only concentrated at the top of the income and wealth distribution, but also in a small share of regions. While some parts of the country have surged ahead, millions of Americans in urban and rural communities are still waiting for their wages to start rising again and struggling to make ends meet.
New rules from the Trump administration are expected to allow states to weaken protections that prevent insurers from discriminating based on pre-existing conditions. This would potentially expose half of nonelderly Americans, 133 million in total, to denial of coverage or unaffordable premiums because of pre-existing conditions. This would affect Americans of all ages, including 17 million children, although it would disproportionately impact older Americans, who often suffer from more chronic health issues.
Jul 27 2018
Medicare: Protecting Seniors and Families
Medicare is one of the success stories of the last half century. Since its passage in 1965, Medicare has facilitated the near-universal health coverage of the elderly population in America and the dramatic decline in their poverty rate. With Medicare’s help, seniors are able
to access the high-quality care they need while minimizing strain on their pocketbooks. Today, more than 58 million seniors and people with disabilities are able to live longer, healthier, and more financially secure lives.
to access the high-quality care they need while minimizing strain on their pocketbooks. Today, more than 58 million seniors and people with disabilities are able to live longer, healthier, and more financially secure lives.
In the wake of today’s Gross Domestic Product (GDP) release, it is important to remember that large gains for a small group can keep total income growing, even while many or even most Americans see their incomes stagnate or shrink. Republicans will likely trumpet this as a sign that the tax cuts are working to improve the economy for all Americans. But it is important to think about what it actually does, and doesn’t, tell us about the economy. GDP is a measure of the total income generated in a year by the U.S. economy, but the whole doesn't always tell us enough about the parts.
This week, House Republicans plan to reveal their Tax Cut 2.0 plan. It is widely expected that the plan will make the temporary provisions of the new tax law permanent, including the 20 percent deduction on qualifying pass-through income. The benefits of the deduction flow mostly to the wealthiest Americans, such as those that own large hedge funds, law firms, and real estate companies. While just 2 percent of the benefits in 2018 will go to households earning under $50,000 a year, 44 percent will go to households earning more than $1 million.
