By Ann White, Annies Attic
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The good news is that wise investments can address these problems, raise Americans' living standards, and create a nation where every child has a much greater opportunity to succeed. Page 13 2 STAGNATION FOR MOST, DECLINE FOR MANY Productivity growth has slowed to a crawl since 1973. Although difficult to measure, income growth has slowed for most and has been reversed for many Americans. Inequality is also difficult to measure, but all measures of inequality show it has risen as growth has slowed.
The nation's rates of poverty, especially for children, remain at unconscionable levels. The United States is alone among the industrialized nations in experiencing high and rapidly rising child poverty. Some observers have hypothesized that an inevitable trade-off occurs between job growth and earnings inequality. The rest of this volume outlines policies that improve skills and promote new, high-productivity enterprises that can avoid this tradeoff. Before describing these solutions, we must understand the sources of the slower productivity growth and growing inequality that plague the nation.
These policies run throughout a citizen's life cycle. The nation cannot afford cradle-to-grave income supports (and many would not endorse the lower work effort that would follow). At the same time, the nation cannot afford to ignore a life cycle of investments that can increase equity, improve incentives and opportunity, and create high returns. The analysis begins with policies to help children and improve schools, then moves on to programs to finance college and to help students move from school to work.