Publications: Stephen Rose

It has become widely accepted in the last several years that there has been a massive increase in income inequality in America, said to be behind the rise of populism on both the right and the left. It’s a compelling narrative, but is it borne out by evidence or simply accepted as true because it is a constant refrain?

No one has done more to shape the narrative about income inequality in America than economist Thomas Piketty. But he and his colleagues have been making questionable methodological choices that maximize the jarring effect of their findings.

In this blog post, Stephen Rose addresses critics of his report "The False Claim That Inequality Rose During the Great Recession."

Notwithstanding claims to the contrary, income inequality has fallen, not increased, since the Great Recession.

The richest 1 percent actually saw their incomes decline during the Great Recession.

Productivity growth is needed to ensure a robust economy that benefits the average American worker.

Those who argue growth only benefits the rich are wrong.

We certainly have problems—particularly high inequality, but technology is a good thing that enlarges the economic pie.

In the last few years many have argued that the middle class has not been receiving its fair share of productivity income growth. As a result, the focus of many, particularly those on the left, has shifted from promoting productivity growth to redistribution as a way to raise living standards for this group of Americans. A new ITIF paper examines carefully the trends over the last 25 years in income growth and finds that, contrary to the conventional explanation embraced by many on the left, the historical link between productivity growth and wage growth is not broken and it would be a grave mistake for our future if our nation gave up on growth and the policies that can spur it.