Aspen slides
- 1. Steven Rattner July 1, 2014 Understanding and Addressing Income Inequality
- 2. 2
- 3. 3 Piketty’s Important New Book
- 4. 4 Instant Bestseller Source: NY Times bestsellers list May 11, 2014
- 5. 5 But Weighty and Complex
- 6. Trends in Income and Wealthy Inequality 6
- 7. 19.3% 4.1% 18.0% 2.8% % Note: Excludes capital gains Source: Emmanuel Saez, Thomas Piketty Record Income Inequality in the US 7
- 8. Wealth Is More Unequal Than Income Source: Thomas Piketty 33.8% 17.4% 8
- 9. Source: Thomas Piketty The Super Rich Have Gained the Most Decomposing the Top 1% 1%-0.5% 0.5%-0.1% 0.1%-0.01% 0.01% 9
- 10. US Leads in Income Inequality Note: As of 2010 Source: Thomas Piketty 10
- 11. Income Inequality: US vs. Europe Source: Thomas Piketty 14.7% 17.4% 8.8% 6.9% 11
- 12. Wealth Inequality: US vs. Europe Source: Thomas Piketty 33.8% 28.0% 24.4% 20.7% 12
- 13. State of the Middle Class 13
- 14. US Middle Class Is Losing Its Lead… Note: As of 2010 Source: NY Times, Luxembourg Income Study Analysis 14
- 15. …And Is No Longer World’s Richest Note: As of 2010 Source: NY Times, Luxembourg Income Study Analysis 15
- 17. A Plethora of Causes Principal causes: Technology Globalization Secondary causes: Tax policy Declining unionization “Winners-take-all” labor markets 17
- 18. Skills Matter Source: Bureau of Labor Statistics 18
- 19. How Globalization Hurts Wages Source: Bureau of Labor Statistics Change in Wages by Sector (Jun-09 to May-14) 19
- 20. Lower Tax Rates, Higher Inequality Note: Change in top income shares and top marginal tax rates since 1960 Source: Emmanuel Saez, Thomas Piketty 20
- 21. Government Transfers Reduce Inequality Note: As of 2010 Source: CBO, Gary Burtless 21
- 22. But US Does Less to Redistribute Income 22 Note: As of 2011 Source: OECD
- 23. Inequality Associated with Immobility Source: Alan Krueger’s Great Gatsby Curve, Corak (2011), CEA estimates 23
- 24. But Mobility Has Not Changed Over Time 24 Source: “Equality of Opportunity Project” by Raj Chetty , Nathaniel Hendren, Patrick Kline, Emmanuel Saez and Nicholas Turner
- 25. Source: Andrew Berg and Jonathan D. Ostry, IMF More Inequality May Mean Less Growth 25
- 26. Source: OECD Income Distribution and Poverty Database and OECD Economic Outlook Database Or It May Not 26
- 27. Solutions 27
- 28. No Silver Bullets Education / retraining / vocational training More progressive tax policies Enhanced social welfare programs Increased Federal investment spending (R&D, infrastructure etc.) Fair (but free) trade 28
- 29. 19.3% 4.1% 18.0% 2.8% % Note: Excludes capital gains Source: Emmanuel Saez, Thomas Piketty In Conclusion 29