Richard Freeman, Harvard University
Presentation summary
- Distorted economic growth – high income earners (especially 0.1%) accumulating large share of US pre-tax income – Top 0.1% have 12 percent of pre-tax income, double what they had in 1980. If growth in top 0.1% income had gone to rest of working population, everyone would have seen 10% rise in income
- What will be the US public’s reaction to another financial crisis?
- Inequality and good vs. bad innovation
- Not all innovation is good – type and locus of innovation matters for its impact
- Relationship between innovation and inequality – innovation could increase inequality rather than reduce it
- Implications for policy:
- Institutions matter. Example: unions, minimum wage, tax policy, form of compensation
- International student and immigration policy are major part of innovation policy
- Need to monitor overseas science and innovation – help small and medium firms keep abreast of new developments
- Cutbacks in science R&D can endanger innovation
- Need to develop a new metric of innovation aside from looking at patent and R&D data