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A Credible Grand Strategy: The Urgent Need to Set Priorities • Stimson Center

This paper documents why U.S. foreign policy should change, and then maps out how it can be done. ....

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Wages, Profits, and Income: Politics vs. Reality

(Archived document, may contain errors) April 19,1996 No. 97 WAGES, PROFITS9 AND INCOME: POLITICS VS. REALITY By Mark Wilson Rebecca Lukens Fellow in Labor Policy "On Labor Day 1995, the earnings of most American workers are either stuck in the mud or sinking. Profits are up. Paychecks are not." -Secretary Robert B. Reich, Labor Day Address, August 31, 1995. "The state of the Union is strong. Our economy is the healthiest it has been in three decades." -President Clinton, State of the Union Address, January 23, 1996 INTRODUCTION ....

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Is rising income inequality just an illusion?

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One of the Biden administration’s top priorities is to tackle income inequality in the United States. It stems from a widely held view that the gap between rich and poor has widened steadily since the 1980s when the Reagan administration cut the highest marginal tax rate from 70 percent to 28 percent. To address this issue, President Biden is proposing tax increases for corporations and households with annual income of more than $400,000.
But is this perception accurate? A recent op-ed by Phil Gramm and John Early asserts that it is an illusion that results from the U.S. Census Bureau failing to account for taxes and transfer payments in its measures. When both items are taken into account, they assert that income inequality is actually lower than it was 50 years ago. ....

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