MIT professor and co-author Daron Acemoglu suggests that economic prosperity comes from high-wage job creation.

Fiona Sydney

2019-05-19 19:31:00 Sun ET

MIT professor and co-author Daron Acemoglu suggests that economic prosperity comes from high-wage job creation. Progressive tax redistribution cannot achieve the same economic gains that would result from more high-skill employment. The government should promote better tech advances and labor market institutions to empower workers through higher education systems. Also, the government should encourage firms to deploy better technology to boost real wage growth and labor productivity. The government can increase product market competition such that firms cannot charge monopoly prices without hiring more workers. Meanwhile, the current institutional architecture depresses U.S. private-sector wage growth (2.5% per annum from 1947 to 2000 and almost nil thereafter). In this negative light, the government should raise the U.S. tax-revenue-to-GDP ratio from 27% to the 35% OECD benchmark. The incremental fiscal intake can help ensure higher wages for tech-savvy high-skill workers.

Moreover, the government has to set clear rules with respect to tech market power, privacy, and content curation. Recent examples include the E.U. fines on Google for online search market dominance, Facebook-Cambridge-Analytica data breach, and Amazon premium user surveillance via Alexa-and-Echo artificial intelligence. These rules may entail plausible penalties on foreign interference in U.S. elections, privacy invasion, and the viral distribution of inappropriate content etc.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

Internal capital markets and financial constraints

Charlene Vos

2022-10-15 09:34:00 Saturday ET

Internal capital markets and financial constraints

Internal capital markets and financial constraints Duchin (JF 2010) empirically finds that multidivisional firms with robust internal capital markets ret

+See More

Berkeley tax economists Gabriel Zucman and Emmanuel Saez find fresh insights into wealth inequality in America.

Jacob Miramar

2019-06-27 10:39:00 Thursday ET

Berkeley tax economists Gabriel Zucman and Emmanuel Saez find fresh insights into wealth inequality in America.

Berkeley tax economists Gabriel Zucman and Emmanuel Saez find fresh insights into wealth inequality in America. Their latest estimates show that the top 0.1

+See More

Warren Buffett points out that it is important to invest in oneself with better interpersonal communication.

Daphne Basel

2017-12-17 11:41:00 Sunday ET

Warren Buffett points out that it is important to invest in oneself with better interpersonal communication.

Warren Buffett points out that it is important to invest in oneself. Learning about oneself empowers him or her to lead a meaningful life. This valuable inv

+See More

JPMorgan Chase CEO says President Trump has now awaken the animal spirits in U.S. stocks.

Dan Rochefort

2017-02-13 09:35:00 Monday ET

JPMorgan Chase CEO says President Trump has now awaken the animal spirits in U.S. stocks.

JPMorgan Chase CEO Jamie Dimon says President Trump has now awaken the *animal spirits* in the U.S. stock market. The key phrase, animal spirits, is the

+See More

Daron Acemoglu and James Robinson show that good inclusive institutions contribute to better long-run economic growth.

Monica McNeil

2023-06-14 10:26:00 Wednesday ET

Daron Acemoglu and James Robinson show that good inclusive institutions contribute to better long-run economic growth.

Daron Acemoglu and James Robinson show that good inclusive institutions contribute to better long-run economic growth. Daron Acemoglu and James Robinson

+See More

Anat Admati and Martin Hellwig raise broad critical issues about bank capital regulation and asset market stabilization.

Charlene Vos

2023-06-07 10:27:00 Wednesday ET

Anat Admati and Martin Hellwig raise broad critical issues about bank capital regulation and asset market stabilization.

Anat Admati and Martin Hellwig raise broad critical issues about bank capital regulation and asset market stabilization. Anat Admati and Martin Hellwig (

+See More