On a visit to the Princeton campus recently, I asked a famous economics professor a simple question, “Are we in a recovery?”
He gave me a simple, emotionless answer, “No.”
I then asked him how many of the economists in the building would agree. He said, “Every one of them.” I asked him why the media reports indicate that we are in a recovery. His exact words, “I don’t know.”
I’m concerned there’s a mistaken understanding of U.S. economic dynamism. The New York Times, The Wall Street Journal, Financial Times, Fox, MSNBC, all the networks — the Federal Reserve, too — all say the same thing: The job market is strong and the economy is growing. We’re in a recovery.
That’s only partly true.
As optimistic Americans, we really want to believe this narrative. I want to. But it is hard to square this with the fact that half of Americans are making less than they were 35 years ago in real terms. They have not received a raise in 35 years. Making things worse, the cost of housing, healthcare and education are exploding while […]
Appreciate that the proposed test is not bias regarding economic status. Wondering if it’s got a gender bias or not? ( I’m a woman with an engineering degree- my first job had no women’s bathroom in the building)
Also wondering if other elements should be fixed first to create a path for entrepreneurs- a key factor I know affects decisions is access to healthcare and childcare. I’d rather see universal childcare and pre K and universal healthcare as these are inclusive policies rather than a test that creates exclusion of potential entrepreneurs.
Jim Clifton attributes the decline to a lack of entrepreneurs: “What we need is more entrepreneurship — people who can create customers.” Did the Princeton economist tell him that’s what we need? His solution? Gallup’s “BuilderProfile10” assessment product, which will enable identification of likely entrepreneurs.
What a thin response to the challenges presented by his opening comments! How ’bout a dispassionate analysis (e.g. – Thomas Picketty’s “Capital”) of the change needed at the heart of the problem: our current dead-end, winner-take-all system, which is on a roll to oblivion. Immediate course correction of even a few degrees could gradually bring fair economic and social resource access to the entire population of this country and set an example for the world. Perhaps even before the coastal cities are underwater.