Tim Price

Deputy Editor

Recent Posts by Tim Price

  • The House GOP Budget Ignores the Evidence That Combating Inequality is Good for Economic Growth

    Mar 19, 2015Tim Price

    The budget proposal put forth by House Republicans this week has been roundly criticized as yet another attempt to enact massive tax cuts that would redistribute money to the top at the expense of middle- and low-income families. Republicans contend these cuts would pay for themselves by producing rapid economic growth, which would create the proverbial rising tide that lifts all boats. But this is the GOP’s same old so-called trickle-down economics with a fresh coat of we-care-about-the-middle-class paint.

    The budget proposal put forth by House Republicans this week has been roundly criticized as yet another attempt to enact massive tax cuts that would redistribute money to the top at the expense of middle- and low-income families. Republicans contend these cuts would pay for themselves by producing rapid economic growth, which would create the proverbial rising tide that lifts all boats. But this is the GOP’s same old so-called trickle-down economics with a fresh coat of we-care-about-the-middle-class paint. In reality, nonpartisan experts agree that policies that directly help low and middle-income families and reduce inequality are the real key to growth. Here are the facts:

    • Inequality is holding back economic growth. A Standard & Poor’s report found that extreme inequality in the U.S. is a drag on growth. Due to that rising inequality, S&P revised the 10-year growth forecast for the U.S. down from 2.8 percent to 2.5 percent annually.  
    • We don’t have to choose between equality and prosperity. Recent research thoroughly discredits Okun’s Law, the economic belief that there is a trade-off between equity and efficiency. In a 2014 report that analyzed historical data across multiple economies, the International Monetary Fund actually found that “the combined direct and indirect effects of redistribution – including the growth effects of lower inequality – are on average pro-growth.”  
    • Taxing the rich won’t hurt the economy. Wealthy interests often claim that taxing them will slow growth, but the same IMF report found that “the best available macroeconomic data do not support that conclusion.”

    Despite Republicans’ desire to portray themselves as protectors of the free market and the middle class, even these market-oriented organizations recognize that progressive, middle-class-friendly tax policy is better for the overall economy. Roosevelt Institute Senior Fellow and Chief Economist Joseph Stiglitz has released a plan for reforming the tax code to promote equitable economic growth, and there will be more to come through the Roosevelt Institute’s Inequality Project as we continue to seek solutions to America’s growing inequality crisis.

    Tim Price is Communications Manager for the Roosevelt Institute. Program Associate Eric Harris Bernstein contributed research to this post.

    Click here to read the Roosevelt Institute | Campus Network's response to the Republican budget.

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  • Daily Digest - January 20: Black and White Americans Are Still a World Apart

    Jan 20, 2015Tim Price

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    This Is the Key to Recovering Black Wealth in America (The Nation)

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    This Is the Key to Recovering Black Wealth in America (The Nation)

    Roosevelt Institute Fellow Mike Konczal and Bryce Covert note that housing segregation continues to limit Black economic mobility and contribute to a racist criminal justice system.

    Obama's Tax Proposal Is Really About Shaping the Democratic Party After Obama (NYT)

    The President's call to raise capital gains taxes while cutting taxes for workers won't get far in a Republican Congress, writes Neil Irwin, but it gives Democrats an organizing vision.

    America Just Got Its First Glimpse at Hillarynomics -- Here's What It Looks Like (Vox)

    A new report produced by key Clinton insiders emphasizes middle-class growth, writes Matt Yglesias, but sets aside thornier issues like Too Big To Fail or a public option for health care.

    The New Compassionate Conservatism and Trickle-Down Economics (Robert Reich)

    The 2016 Republican frontrunners may talk a big game about addressing inequality, says Robert Reich, but unless they renounce Reagonomics, their policies will only make it worse.

    Democrats Urge Obama to 'Be Bold' on Overtime Pay Expansion (HuffPost)

    Lawmakers want the Labor Department to make salaried workers earning less than $69,000 a year eligible for overtime pay, writes Dave Jamieson. The administration is considering a $42,000 threshold.

    Community Benefits Agreements Under Attack (Al Jazeera)

    An ALEC-backed bill in Michigan would ban government contracts that require businesses to meet community improvement goals in exchange for tax breaks and subsidies, reports Amy B. Dean.

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  • Daily Digest - December 12: What Progressives Lost in the Cromnibus Showdown

    Dec 12, 2014Tim Price

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    Why D.C. Is Up in Arms About Derivatives... Again (Marketplace)

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    Why D.C. Is Up in Arms About Derivatives... Again (Marketplace)

    Roosevelt Institute Fellow Mike Konczal tells Stan Alcorn that the financial regulation repealed in the budget deal had already been scaled back to include only the riskiest types of derivatives trading.

    What's Next for the Minimum Wage Movement? (MSNBC)

    Roosevelt Institute Fellow Dorian Warren moderates a discussion about the grassroots political power that's pushing the minimum wage fight forward despite gridlock at the federal level.

    Why Elizabeth Warren Is Going to War With Obama Over Antonio Weiss (Vox)

    Senator Warren sees the President's pick for Undersecretary of Treasury for Domestic Finance as more evidence that the administration is too friendly to Wall Street, writes Matt Yglesias.

    Misreading the Lessons From Financial Crises (NYT)

    Alan Greenspan's response to the 1987 stock market crash trained both regulators and investors to expect the Fed to prop up markets instead of addressing the underlying problems, writes Floyd Norris.

    Banking Lobbyists Block Transparency Bill, Advocates Say (IBT)

    A bill to reform the Freedom of Information Act is stalled in the House, reports Matthew Cunningham-Cook, as Wall Street seeks to maintain a veil of secrecy about its deals with public agencies.

    New on Next New Deal

    The Budget Fight Was the First Skirmish in the War for the Soul of the Democratic Party

    Democrats had the leverage to block a deal that opens the door to more Wall Street bailouts, writes Roosevelt Institute Senior Fellow Richard Kirsch, but instead they gave in to Republican blackmail.

    The Bipartisan Policy Center Gets It Wrong: The Lincoln Amendment Is Critical to Financial Reform

    Roosevelt Institute Fellow Mike Konczal joins with The Other 98's Alexis Goldstein and Better Markets' Caitlin Kline to debunk the claim that the regulation repealed by the budget deal is redundant.

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  • Daily Digest - October 27: Wall Street Should Worry About Crossing the American Public

    Oct 27, 2014Tim Price

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    Pensions and Private Equity (NYT)

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    Pensions and Private Equity (NYT)

    In a letter to the editor, Roosevelt Institute Fellow Saqib Bhatti says public pension funds should use the leverage provided by their huge pools of capital to demand transparency from Wall Street firms.

    City Pays High Price for Interest Rate 'Deals' (Chicago Reporter)

    Experts like Saqib Bhatti and Roosevelt Institute Senior Fellow Brad Miller say banks misrepresented the risks of Chicago's interest rate swaps, and they've cost the city hundreds of millions, writes Curtis Black.

    Comcast: Broadband Battleground (FT)

    The merger of Comcast and Time Warner Cable would create a monopoly on high-speed Internet comparable to 19th century railroad barons, Roosevelt Institute Fellow Susan Crawford tells Matthew Garrahan.

    25 European Banks Fail Stress Test (Reuters)

    A group of Europe's biggest banks had a collective capital shortfall of 25 billion euros in 2013, Laura Noonan and Eva Taylor report, which would put them at risk in the event of another economic shock.

    5 Ways America Is Failing Millennials -- And What to Do About It (Vox)

    Millennials face a unique set of public policy challenges, writes Reid Cramer, from their inability to find long-term employment and benefits to their distaste for hyper-partisan politics.

    Coalition of Immokalee Workers' Fair Food Label Makes National Debut (AP)

    The CIW, which received the Roosevelt Institute's Freedom from Want Medal in 2013, says the new label will identify tomatoes picked by workers who are paid a premium and afforded basic rights.

    Commission Greenlights Grocery Deliveries by Struggling Postal Service (WaPo)

    In a two-year trial for a potential nationwide program, the USPS will raise revenue by delivering groceries in San Francisco, despite concerns from private grocery-delivery services, writes Josh Hicks.

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  • Daily Digest - October 17: The False Prophets of the Invisible Hand

    Oct 17, 2014Tim Price

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    What Markets Will (NYT)

    Many economic analysts talk about the market as a kind of divine force, writes Paul Krugman, but they're only using it as an excuse to justify their own desire for more human sacrifice.

    Click here to subscribe to Roosevelt First, our weekday morning email featuring the Daily Digest.

    What Markets Will (NYT)

    Many economic analysts talk about the market as a kind of divine force, writes Paul Krugman, but they're only using it as an excuse to justify their own desire for more human sacrifice.

    AbbVie Board Ditches Planned $55 Billion Shire Acquisition (Reuters)

    The pharmaceutical company has abandoned plans to shift its tax base to the U.K., reports Ben Hirschler, because new rules make it harder to dodge U.S. taxes through such inversion schemes.

    How the Fed Is Trying to Fill in the Gaps of Monetary Policy (WaPo)

    Janet Yellen met with nonprofits and community developers in Chelsea, MA yesterday to discuss how Federal Reserve policy can better support working-class cities, reports Ylan Q. Mui.

    Even Red-State Voters Want to Raise the Minimum Wage (The Nation)

    Minimum wage increases will be on the ballot this fall in some states that lean heavily Republican, writes John Nichols, despite opposition from the top leadership of the party.

    $10.10 Minimum Wage Would Save The U.S. Government $7.6 Billion A Year (HuffPost)

    A new study from the Economic Policy Institute shows that a higher minimum wage would allow 1.7 million workers to stop relying on public assistance programs, reports Kevin Short.

    Companies Warn That Income Inequality Is Hurting Their Business (ThinkProgress)

    An analysis of corporate filings finds that many of the largest U.S. retail companies are concerned that their customers are not earning enough money to support sales, writes Alan Pyke.

    The Volcker Rule: How a Simple Idea to Rein In Banks Got Supersized (Bloomberg View)

    A straightforward proposal to ban proprietary trading has ballooned to hundreds of pages, leading some to call for the return of Glass-Steagall as an alternative, writes Yalman Onaran.

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