Updates / The Knowledge Economy

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By and / 12.13.2018

Chinese hackers stealing technology from U.S. companies, Russian trolls interfering in our elections, U.S. tech leaders hauled before Congress to explain some new data breach or misuse of personal information – hardly a week goes by without Americans being bombarded with new revelations about assaults on our privacy. The problem will only get worse as […]

By / 12.3.2018

Here’s what you need to know. Between 2000 and 2017, the price of food went up by 41%, according to the BEA. The price of Internet access fell by 21%. Which change is more harmful to consumers? Oh, yes, and food at home accounts for 6% of household spending, while Internet access accounts for 0.6%. […]

By / 10.25.2018

How fast the tables have turned. Only a few years ago, the major technology platform companies — Alphabet (Google), Amazon, Apple and Facebook — were widely admired. Now, they are in the dock, accused of limiting competition; chilling startups and the innovation they bring; widening income and wealth inequality; threatening our privacy; enabling foreign actors […]

By / 10.3.2018

Fixating on the traditional aggregate measures of the economy’s health — GDP growth, the unemployment rate, or the inflation trade — ignores not only rising income and wealth inequality, but the fact the American Dream machine has been sputtering for at least two or three decades. Stanford’s Raj Chetty and his co-authors have shown that […]

By / 10.2.2018

Amazon just announced that it would raise the minimum hourly wage for all of its US workers to $15 per hour, including workers employed by temp agencies.  This is good news for Amazon’s workers, obviously.  But it’s also a sign that we’ve moved into a new era, where technology is driving rising real wages for […]

By / 9.13.2018

WASHINGTON—As the Federal Trade Commission (FTC) kicks off public hearings today on economic concentration and competition, the Progressive Policy Institute (PPI) weighs in with a new e-book by economist and antitrust lawyer, Robert Litan, one of America’s leading authorities on antitrust law and competition policy. In A Scalpel, Not an Axe: Updating Antitrust and Data […]

By / 9.7.2018

The ecommerce revolution is driving an employment and wage boom in the warehousing industry. Over the past 3 years, the number of production and nonsupervisory workers in general warehousing has gone from 642K to 810K, propelled by the rapid expansion of ecommerce fulfillment centers around the country. Our earlier research showed that ecommerce fulfillment centers […]

By / 8.23.2018

The FTC recently asked for comments on “Competition and Consumer Protection in the 21st Century.” PPI submitted  two excerpts from a forthcoming paper, “Taking Competition Policy Seriously: Macro Indicators for Regulators.”  Here is a summary of the first excerpt, the introduction: Recent work has linked increased concentration to poor macroeconomic outcomes. In this spirit, this […]

By / 8.13.2018

Summary: Based on new “digital economy” data from a recent BEA working paper, we calculate that the labor share of the digital sector has risen since 2007, while gross margin of the digital sector has fallen over the same period. This result is consistent with strong competition in the digital product and labor markets (see […]

By / 8.8.2018

WASHINGTON—Manufacturing productivity, on the decline for two decades, could be on the upswing and the sector could be on the verge of a significant transformation, according to a new report authored by PPI Chief Economic Strategist Dr. Michael Mandel. This shift hinges on an alternative digital future for manufacturers – one built around innovations in other […]