Region: United States
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A new study published by the Mercatus Center at George Mason University ranks each state’s readiness for an economic downturn based on the size of its rainy day savings fund and budget surplus.
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“This year’s report shines its harshest spotlight on many courts and government authorities throughout hyper-litigious California, where legislators see fit to produce more than 800 new laws each year, inviting evermore litigation as residents and businesses can’t hope to keep up with what’s legal and what isn’t,” Joyce continued.
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The Affordable Care Act (ACA) will make the labor supply, measured as the total compensation paid to workers, 0.86 percent smaller in 2025 than it would have been in the absence of that law, the Congressional Budget Office estimates. Three-quarters of that decline will occur because of health insurance expansions, which raise effective tax rates on earnings from labor—for instance, by phasing out health insurance subsidies as people’s income rises—and thus reduce the amount of labor that workers choose to supply. The labor force is projected to be about 2 million full-time-equivalent workers smaller in 2025 under the ACA than it would have been otherwise. Those estimates were based mainly on CBO’s calculations of the effects of the law’s major components on marginal and average tax rates and on the agency’s analysis of research about the change in the labor supply resulting from a change in tax rates. For components of the law that were difficult to express in terms of changes in tax rates, CBO based its estimates on a review of the available literature about similar policy changes.
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A new study released today by the American Highway Users Alliance identifies America’s 50 worst bottlenecks and finds that the very worst bottleneck, as measured by hours of delay, is in Chicago, IL. Los Angeles, CA owns the next six of the top 10.
Report
In Section 1 of this paper, we argue that the challenge facing the middle class is less about fundamental economic unfairness—but fundamental change due to globalization and technology coupled with a country, a workforce, and a set of institutions that are simply not ready for this new economy. Moreover, we show that the narrative of fairness has demonstrably failed to excite voters, with three consecutive losing performances with the middle class—leaving Democrats with the fewest number of officeholders since 1928. In Section 2, we propose an ambitious and actionable Democratic agenda that would generate economic growth that directly benefits the middle class through over 70 policy ideas that create more skills, more jobs, and more wealth.
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