Stiglitz on Inflation

The Answer Is Investment

Today’s consumer price numbers reflect enduring pandemic disruptions and continuing supply shortages.

That’s why we need a balanced approach to inflation, Roosevelt Chief Economist Joseph Stiglitz argues.

“Yes, the US has slightly higher inflation than Europe; but it also has enjoyed stronger growth. US policies prevented a massive increase in poverty that might have occurred otherwise,” Stiglitz writes. “Recognizing that the cost of doing too little would be huge, US policymakers did the right thing.”

What policymakers should be doing now: “targeted structural and fiscal policies aimed at unblocking supply bottlenecks and helping people confront today’s reality.” 

“The solution to the inflation we see is targeted, sustained investment,” Roosevelt’s Lauren Melodia tweeted. “More investments in COVID and public health, renewable energy sources, and child and elder care.”

Read more inflation analysis from Stiglitz. 

A Win for Workers

“Workers have not had such favorable external conditions for organizing in many decades—economic, political, and cultural support are each at a peak,” Roosevelt’s Aaron Sojourner and Emily DiVito write.

This week, the White House outlined steps to cement those gains in worker power by facilitating union membership and collective bargaining.

“Nearly 75% of workers between the ages of 18-24 say they would join a union if given the chance. Only 8% of those say they know how to form a union,” Labor Secretary Marty Walsh tweeted. 

“Here’s what @USDOL is doing to change that.”

What We’re Reading

A Vision for Making the US Economy More Equitable [feat. Roosevelt’s Felicia Wong] – Noema Magazine

The Unequal Toll of COVID-19 on Workers [co-authored by Roosevelt’s Aaron Sojourner] – Economic Policy Institute

The Jobs Americans Want – Vox

The Economy Is Good, Actually – The Atlantic

Stock Trading Ban for Lawmakers Gains Momentum on Capitol Hill – New York Times