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

Fed minutes reflect gradual interest rate normalization in response to high inflation risk.

Dan Rochefort

2018-02-15 07:43:00 Thursday ET

Fed minutes reflect gradual interest rate normalization in response to high inflation risk.

Fed minutes reflect gradual interest rate normalization in response to high inflation risk. FOMC members revise up the economic projections made at the Dece

+See More

The U.S. federal government debt has risen from less than 40% of total GDP about a decade ago to 78% as of May 2018.

John Fourier

2018-06-01 07:30:00 Friday ET

The U.S. federal government debt has risen from less than 40% of total GDP about a decade ago to 78% as of May 2018.

The U.S. federal government debt has risen from less than 40% of total GDP about a decade ago to 78% as of May 2018. The Congressional Budget Office predict

+See More

President Donald Trump unveils the dramatic *tax overhaul proposal*.

Daisy Harvey

2017-04-13 10:42:00 Thursday ET

President Donald Trump unveils the dramatic *tax overhaul proposal*.

President Donald Trump unveils the dramatic *tax overhaul proposal*. Through this tax plan, Trump replaces the current 7 income tax brackets with 3 leane

+See More

Several pharmaceutical companies now switch their primary focus from generic prescription drugs to medical specialties.

Rose Prince

2018-10-15 09:33:00 Monday ET

Several pharmaceutical companies now switch their primary focus from generic prescription drugs to medical specialties.

Several pharmaceutical companies now switch their primary focus from generic prescription drugs to medical specialties such as cardiovascular medications an

+See More

President Trump may reluctantly sign the congressional border wall deal in order to avert another U.S. government shutdown.

Apple Boston

2019-02-13 11:00:00 Wednesday ET

President Trump may reluctantly sign the congressional border wall deal in order to avert another U.S. government shutdown.

President Trump may reluctantly sign the congressional border wall deal in order to avert another U.S. government shutdown. With his executive power to decl

+See More

President Trump meets Chinese President Xi for better economic reforms.

Rose Prince

2017-03-21 09:37:00 Tuesday ET

President Trump meets Chinese President Xi for better economic reforms.

Trump and Xi meet in the most important summit on earth this year. Trump has promised to retaliate against China's currency misalignment, steel trade

+See More