What Is Economic Growth Without Shared Prosperity?

Apr 14, 2014Joelle Gamble

It's time for the U.S. to recognize that policies to push economic growth must focus on average Americans, not "job creators."

Rampant inequality is putting the future of the American economy in peril. The financial recovery we have experienced the past few years has only led to massive gains for top earners and little to no change for average Americans. Decades of policies that throw more benefits to the top have not “trickled down” to the average household.

But more importantly, our current idea of economic progress is skewed. The wealthy have created this idea that “job creators” are a class of people who can magically restore out economy, ignoring the fact that entrepreneurship and innovation come from all economic statuses.

America needs to shift our economic narrative away from a heavy emphasis on GDP-based growth and toward a model that promotes prosperity for everyone. We need to think about how we generate demand in order to create jobs. This demand comes from average Americans having the ability to engage meaningfully in the economy, with fair wages without discrimination in the workplace. In short: economic progress must involve prosperity for all Americans, not just “job creators.”

Legislative battles at the local, state, and federal levels around equal pay and the minimum wage will prove crucial to changing our conception of what constitutes good economic policy. Victories in these fights represent tangible ways in which the average American worker can better his or her own economic prospects and simultaneously grow the economy.

We are seeing progress now. In January, the city of Seattle began pushing to raise the minimum wage for city workers to $15.00 per hour. Earlier this week, the state of Maryland voted to raise its minimum wage from the federal $7.25 to $10.10 per hour. Meanwhile, President Obama continues his push for federal action.

Meanwhile, in the United States, women make an average of $0.77 for every $1.00 earned by men, but growing movements are pushing the needle in the right direction. The President signed directives to clamp down on gender discrimination by federal agencies and contractors. Americans show strong bipartisan support for paid sick leave and family leave. Municipalities, are pushing through bills to make this support a reality –in New York City, Mayor De Blasio has already expanded the paid sick leave law that was established in 2013.

While the most sustainable and sweeping changes on these fronts may be best achieved at the federal level, many of the real policy battles are playing out in cities and states. This presents a real opportunity to involve a wide swath of Americans in economic justice work in their neighborhoods. If organizers on the ground build power to push a prosperity-centric policy agenda forward through both community building and new technology platforms, we can see a real shift in the narrative of what economic progress looks like in this nation.

Joelle Gamble is the Roosevelt Institute | Campus Network National Field Strategist.

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