The Case for a Prosperity Dividend

Publication Date: February 2001

Publisher: Economic Policy Institute

Author(s): Eileen Appelbaum

Research Area: Economics

Type: Brief

Abstract:

The economic boom of the 1990's established the United States as the leading world economy and has brought the benefits of economic progress to virtually all citizens. It has increased employment, raised the real wages of workers across the board, including low-skill and minority workers, enabled the country to reduce welfare rolls, contributed to the fall in crime, and brought the reality of opportunity to all. It is imperative for the well-being of the American people that this economic boom be maintained for all.

But in early 2001 there are troubling signs that the boom is running out of steam just as the new Bush Administration and Congress begin their task of running the country. The economy needs a stimulus to give it a boost and to get it back on track. In any case, a stimulus will do no harm: except for the volatile energy and food sectors, prices are flat or falling, and inflation is dormant.