Inequality vs. the productivity slowdown

Greg Mankiw writes:


The Economic Report of the President was released today.  A friend draws my attention to Table 1-3 on page 34, which presents several historical counterfactuals.  It finds:


1. If productivity growth had not slowed after 1973, the median household would have $30,000 of additional income today.

2. If income inequality had not increased after 1973, the median household would have $9,000 of additional income today.


So, which is the bigger problem?


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Published on February 19, 2015 21:37
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