A new initiative organized by academic economists promises to provide a new vision to economic policy that stands as an alternative to market fundamentalism without sacrificing the principles of liberal democracy. Launched by economists Suresh Naidu, Dani Rodrik, and Gabriel Zucman, the initiative has published a compilation of policy briefs on labor, competition, globablization and other topics. JRCPPF Director, Atif Mian, and Ilyana Kuziemko, Professor of Economics at Princeton are founding members of this coalition. Mian drafted an inaugural policy brief entitled "How to think about finance?"
The EfIP eBook: Economics for Inclusive Prosperity: An Introduction
We live in an age of astonishing inequality. Income and wealth disparities between the rich and the poor in the United States have risen to heights not seen since the gilded age in the early part of the 20th century, and are among the highest in the developed world. Median wages for American workers remain at 1970s levels. Fewer and fewer among newer generations can expect to do better than their parents. Organizational and technological changes and globalization have fueled great wealth accumulation among those able to take advantage of them, but have left large segments of the population behind. U.S. life expectancy has declined for the third year in a row in 2017, and the allocation of healthcare looks both inefficient and unfair. Advances in automation and digitization threaten even greater labor market disruptions in the years ahead. Climate change fueled disasters increasingly disrupt everyday life. Greater prosperity and inclusion both seem attainable, yet the joint target recedes ever further.
This is a time when we need new ideas for policy. We think economists, among other social scientists, have a responsibility to be part of the solution, and that mainstream economics – the kind of economics that is practiced in the leading academic centers of the country – is indispensable for generating useful policy ideas.