Do the Benefits of Productivity Growth Only Go to the Rich?

Numerous books and research studies, most notably Thomas Piketty’s Capital in the Twenty-First Century, have argued that almost all the gains from increased U.S. productivity growth have been accrued by the wealthy, with the rest of us getting almost nothing.

Why does this matter? Because if it’s actually true that productivity no longer benefits most workers, then why should elected officials do the hard work of advancing pro-productivity policies like corporate tax reform, investment in science and technology, and the development of sector-based productivity strategies. Better to concentrate their efforts on policies to redistribute gains to the bottom 90 percent.

Please join ITIF for the release of a report by labor economist Stephen Rose that uses new data to dispute these dismal findings. Rose will discuss the significant limitations to the analysis of researchers such as Piketty and explain why most average Americans enjoy a higher standard of living today than Americans 30 years ago. The presentation will be followed by an expert panel discussion.