Media clips

---

• What’s at Stake in the 2022 Midterm Elections

  As the country deals with inflation and a looming recession, the economy is top of mind for Americans in the 2022 midterm elections. However, when researching candidates, it’s important to remember that policy makers did not cause inflation. Inflation was caused by global and public health issues, like supply chain disruptions due to COVID-19, port shutdowns, a shift of spending from services to goods, and the war in Ukraine. Knowing this, Economic Policy Institute(opens in new tab) President Heidi Shierholz advises voters to elect candidates based on their willingness to boost living standards and eliminate inequalities, which directly impacts the economy. 

  Marie Claire October 14, 2022
• Lowe’s Workers in New Orleans Petition to Form Company’s First-Ever Union

  Data shows that workers at Lowe’s Home Improvement stores are often paid low wages. According to the Economic Policy Institute, about half of Lowe’s workers are paid less than $15 an hour. Other research has found that, in 2020, the median salary for full time retail workers at the chain was a mere $24,000, or only about $11.50 an hour.

  Truthout October 14, 2022
• How the gig economy could change as the nature of work evolves

  A survey from the Economic Policy Institute from June of this year reported that about 1 in 7 gig workers said they earned less than the hourly federal minimum wage, and about 1 in 5 have gone hungry because they didn’t make enough money to eat regularly.

  Marketplace October 14, 2022
• 6 Risks You Face If You Retire in a Recession

  The problem is that both the Great Recession and the pandemic showed that employment outcomes tend to be much worse for older employees — particularly part-time workers — during economic downturns. Steep job losses and high unemployment are hallmarks of recessions, and according to reports from the Population Reference Bureau (PRB) and the Economic Policy Institute, older part-time workers are often the first to lose their jobs when businesses cut back during lean times.

  Nasdaq October 14, 2022
• Poll: Many pessimistic about improving standard of living

  According to the Economic Policy Institute, the federal minimum wage in 2021 was worth 34% less than in 1968, when its purchasing power peaked.

  Click on Detroit October 14, 2022
• CEO Pay Has Soared by Nearly 1,500% Since 1978, While Workers Have Been Left Behind

  Between 1978 and 2021, according to new research from the Economic Policy Institute (EPI), CEO compensation at the 350 largest publicly traded U.S. companies rose by an inflation-adjusted 1,460%, far outstripping the 18.1% pay increase that the nation’s typical worker saw during that period.

  The trend of soaring CEO pay has continued during the coronavirus pandemic, which caused mass economic chaos and job loss among ordinary workers. EPI found that ​“while millions lost jobs in the first year of the pandemic and suffered real wage declines due to inflation in the second year, CEOs’ realized compensation jumped 30.3% between 2019 and 2021.”

  “Typical worker compensation among those who remained employed rose 3.9% over the same time span,” note EPI’s Josh Bivens and Jori Kandra, the authors of the new report.

  Bivens and Kandra write in their new analysis that the chief executive pay surge in recent decades is not the ​“result of a competitive market for talent but rather reflect[s] the power of CEOs to extract concessions.”

  In 2021, the CEOs of top U.S. companies raked in nearly 400 times more pay than the typical worker.

  “Some observers argue that exorbitant CEO compensation is merely a symbolic issue, with no consequences for the vast majority of workers,” Bivens and Kandra note. ​“However, the escalation of CEO compensation, and of executive compensation more generally, has fueled the growth of top 1% and top 0.1% incomes, generating widespread inequality.”

  Bivens and Kandra write in their new analysis that the chief executive pay surge in recent decades is not the ​“result of a competitive market for talent but rather reflect[s] the power of CEOs to extract concessions.”

  In 2021, the CEOs of top U.S. companies raked in nearly 400 times more pay than the typical worker.

  “Some observers argue that exorbitant CEO compensation is merely a symbolic issue, with no consequences for the vast majority of workers,” Bivens and Kandra note. ​“However, the escalation of CEO compensation, and of executive compensation more generally, has fueled the growth of top 1% and top 0.1% incomes, generating widespread inequality.”

  “Another option,” Bivens and Kandra write, ​“is to set corporate tax rates higher for firms that have higher ratios of CEO-to-worker compensation,” an idea proposed by Sen. Bernie Sanders (I-Vt.) in his 2021 Tax Excessive CEO Pay Act.

  In These Times October 14, 2022
• The coalition argues a flat tax is fundamentally unfair in a state with a high wealth gap. According to the Economic Policy Institute, Massachusetts has the sixth highest income gap of any state.

  David Cooper, the director of the economic analysis and research network at the Economic Policy Institute, a progressive think tank, contends that when wage laws are changed to a single-tier system, business owners can have the assurance that “every single person they compete with is making the same exact adjustment,” reducing the specter of a competitive disadvantage.

  “This is not costless,” Mr. Cooper said. “But for a long time, we haven’t been internalizing the costs of paying workers less than they can live on.”

  New York Times October 14, 2022
• What to know about Question 1, which asks voters if Mass.’ top earners should pay higher taxes

  The coalition argues a flat tax is fundamentally unfair in a state with a high wealth gap. According to the Economic Policy Institute, Massachusetts has the sixth highest income gap of any state.

  WBUR October 14, 2022
• Maryland School Districts Navigate Teacher Shortage

  Economic Policy Institute research said in 1979, teachers made 7% less than those peers, but this year, the pay gap has grown to 23%, a record high.

  Heidi Shierholz, president of the Economic Policy Institute, citing 300,000 public education vacancies nationwide, said the issue boils down to two factors.

  “What’s happening is that it’s becoming more and more difficult to find teachers, and other education personnel, who will take those jobs under current working conditions and at current wages,” Shierholz explained.

  Public News Service October 14, 2022
• Social Security benefits will jump next year. Here’s why.

  It’s counterintuitive, but higher inflation is actually good for the Social Security Trust Fund, said Monique Morrissey, an economist at the left-leaning Economic Policy Institute.

  When prices rise while the number of Social Security recipients and the benefits paid to them increase, it would seem like a bad thing for the trust fund. But the opposite is true, Morrissey said, because one of the main drivers of inflation is rising wages. Since wages and COLAs are increasing, more money is taxable, both from payroll taxes and some of the increased Social Security benefits.

  “Generally speaking, the actuaries will say it’s a wash,” Morrissey said, “but to the extent that it has an impact, it’s a positive one.”

   
  The Washington Post October 14, 2022