The CBPP report explored alternatives to the Fed's current practices. The goal was to examine the proposals' potential effectiveness in promoting full employment, particularly "the strong and sustained labor market conditions that boost living standards and career trajectories across the income distribution and contribute to broad prosperity," the paper reads.
Carola Binder, assistant professor of economics at Haverford College in Pennsylvania and Alex Rodrigue, a Haverford College math and economics major, co-authored the CBPP report. They wrote about their research in an op-ed for the Huffington Post.
"The Fed's monetary policy is not entirely to blame for the problems associated with labor market slack- weak demand, chronically low or negative inflation, slow growth, stagnating wages, and rising inequality - but it could be part of the solution," the op-ed reads. "That will require more than just fine-tuning, however; it will require a new framework for monetary policy. We aspire for a future characterized by full employment: consistently strong labor market conditions that enable workers across the income distribution to bargain for higher wages."
House Speaker Paul Ryan (R-WI,1) expressed regret this week for his past comments against poor Americans, saying in a major speech Wednesday that he was wrong for calling people "makers and takers."
"There was a time that I would talk about a difference between 'makers' and 'takers' in our country, referring to people who accepted government benefits. But as I spent more time listening, really learning the root causes of poverty, I realized something. I realized that I was wrong," Ryan said during his speech about the state of American politics. "'Takers' wasn't how to refer to a single mom stuck in a poverty trap, trying to take care of her family. Most people don't want to be dependent. And to label a whole group of Americans that way was wrong. I shouldn't castigate a large group of Americans just to make a point."
In a question and answer session after his speech, delivered before a group of House interns, Ryan added, "I was callous and I oversimplified and I castigated people with a broad brush. That's wrong. And there's a lot of that happening in America today. I myself have made that mistake."
Congress soon will break for the holidays, but there's still a big issue on the table whether or not to make permanent or even just extend parts of the Earned Income Tax Credit and the Child Tax Credit.
Progress Illinois takes a closer look at a U.S. House budget bill covering the departments of labor, health and human services (HHS) and education. The House Appropriations Committee advanced the spending measure last month.