Much ado has been made recently of the improving unemployment rates in the United States. The US economy under President Obama’s term, according to sources such as the Atlantic, added 11 million jobs and reduced unemployment from 10 percent to below 5 percent as of December 2016.
However, as good as the country’s economic progress has been under the outgoing administration, there is much more work to do.
For starters, the labor participation rate, or the share of American civilians over the age of 16 who are working or looking for a job, has remained stubborn at just over 60%, suggesting many eligible workers have given up gainful employment. When counted along with those who are out of work, Gallup says, the real unemployment rate is actually over 10 percent instead of the accepted 5 percent rate.
Social mobility, measured in terms of dollars passed on inter-generationally remain persistently abysmal. Children born to 90th-percentile earners are typically on track to make three times more than the children of 10th-percentile earners. The effect is said to be stronger on men than on women, reducing the likelihood of marriage later in life among those who have high net-worth, and which in turn reduces the likelihood of wealthy children having a chance to positively impact their communities and broader society.
Which brings us to the subject of wealth-inequality which has worsened over decades of taxation, globalization and trade policies that have mostly benefited top earners. And while the data is clear (see the video), the prescription policies remain myopic. Channeling money out of political campaigns to people who would benefit from stronger social policies, improving affordable housing and housing-voucher programs would give poorer families a chance to move into better neighborhoods, and restructuring tax incentives in a way so corporations and the few high net worth consumers contribute their fair share are just three that would serve the interests of the many.
The incoming administration has a real opportunity to make bold changes and lasting impact, and here’s to hoping that it does.
