News

In the coming year, let us hope that policymakers will listen to the voices of the people and enact policies that truly reflect the needs and aspirations of working families.

Ultimately, it’s the everyday economic realities tempered with some good, old-fashioned common sense that translate most reliably into successful political outcomes.

"Many Americans are struggling to cover basic necessities like medical care and food, let alone save for a major purchase like a home," said Gene Ludwig, former comptroller of the currency and founder of LISEP. It's a stark reminder that interest rate cuts alone won't unlock the housing market for everyone.

President Harry Truman's request for a "one-handed economist" illustrates how policy's reliance on the human factor makes it an inexact science.

LISEP’s data consistently indicated a troubling labor market long before the recent uptick in the official unemployment rate.

No one wants to hear the word “recession.” Except the majority of Americans feel like we’ve been in one for a while. Low- and middle-income households have been reeling from elevated prices and high interest rates over the last several years. Nothing has felt very steady about the economy since the “before times,” prior to the pandemic. Is the sky falling? Or is this the permanent season of uncertainty?

LISEP's June True Rate of Unemployment and the Q2 True Weekly Earnings reports show some modestly encouraging signs for working families, but a deeper dive exposes some more concerning patterns.

The “Economic Dog Days” are upon us, when financial markets take a breather. But recent LISEP data suggests LMI families may be entering their own Dog Days, facing hardships more severe than a mere market slowdown.

Traditional unemployment rates offer a snapshot of a region's economic health, but a closer look reveals a more complex landscape across US metropolitan areas. While some regions boast low unemployment numbers, a deeper analysis exposes disparities.

For months, economists, analysts and politicians, irked by what they describe as Americans’ undue pessimism, have been pointing at a litany of positive economic data — to the “facts,” as they see it. Journalists are even arguing that the problem is not with the data — it’s you, they say. But maybe the metrics we’ve taken for granted for years as telling the story of America’s economy aren’t capturing the economic reality of many Americans.

RegFi co-hosts Jerry Buckley and Caroline Stapleton welcome Eugene Ludwig to discuss the decline in economic opportunities for middle- and low-income Americans.

The full spectrum of inequality within the U.S. is on display in an updated dataset released Friday by the Ludwig Institute for Shared Economic Prosperity.

The real value of workers’ paychecks is being squeezed by the ever-increasing pressure of higher prices while wage increases fail to keep pace. Whatever small amount of a paycheck workers might be saving is being consumed by inflation.

Gene Ludwig joins Beowulf Rochlen on Facepalm America to discuss 'functional unemployment' and how we can improve the well-being of middle- and lower-income Americans through economic research and education.

The traditional model of a secure, full-time position no longer reflects the realities of today’s workforce.

When millions of Americans are constantly being told the economy is great when their pay stubs and bank statements say otherwise, frustration grows as they feel they are being discounted and ignored.

After the BLS released a positive January jobs report, the average rate on a 30-year fixed mortgage made a sudden and drastic jump above 7%. Why does good news for the economy spell bad news for prospective homebuyers?

Policymakers at every level, on both sides of the aisle, would be well served to appreciate the economic reality American families have lived for at least a quarter of a century.

Rarely has Washington stumbled on an issue more confounding than President Biden’s low approval ratings.

We founded LISEP nearly 5 years ago to bring to light facts and statistics that rigorously examine policy choices, and to point policymakers in the right direction. This is the path to a true shared economic reality that will better the lives of our fellow citizens. The journey is just beginning.

LISEP Chairman Gene Ludwig joins Romaine Bostick and Scarlet Fu on Bloomberg TV’s “The Close,” where they discuss the misperception that middle- and lower-income workers are thriving in the informal economy and the extent to which gig work or one-off jobs bridge the gap to functional employment.

About 50% of the American population is considered middle class. And if you’re part of that class, where you live in the U.S. can greatly impact your quality of life — for better or for worse.

The typical American household must spend an additional $11,434 annually just to maintain the same standard of living they enjoyed in January of 2021, right before inflation soared to 40-year highs, according to a recent analysis of government data.

The American economy is not one single entity but an amalgamation of hundreds, even thousands, of smaller regional and local economies.

Some of the most expensive major cities in the U.S. — like San Francisco and Washington — also offer the best living standards for mid- and lower-income households, according to a new study of metro areas by the Ludwig Institute for Shared Economic Prosperity.

Middle- and working-class families are enjoying the best standard of living in some of the most expensive U.S. cities, according to a new economic analysis.

This is one topic where everyone seemingly agrees: an effort must be made to establish an economic policy addressing the dire situation of America’s middle- and working-class families.

LISEP Chairman Gene Ludwig joins Romaine Bostick and Scarlet Fu on Bloomberg TV’s “The Close,” where they discuss the reliability of the headline economic statistics used by policymakers and business leaders alike to make critical decisions — and the disconnect between what these statistics say and what a large swath of America is experiencing.

Through the entirety of the 1960s, employment rose while poverty fell sharply. It was a period of economic expansion that illustrated that shared economic prosperity was, indeed, a realistic goal. Flash forward to the 2020s, and we see a much different story.

As of July 2023, the Consumer Price Index — an array of goods that includes the costs of food, energy, new and used vehicles, apparel, shelter and medical care — was up 3.2% year-over-year. Core inflation, which excludes food and energy costs, yields a higher increase, at 4.7%. But Gene Ludwig worries that the Fed is looking at the wrong measurement.

In today’s economy there is a sharp dichotomy between “employed” and “gainfully employed.” While the headline unemployment rate is impressively low at 3.5%, if you dive deeper into the percentage of workers unable to secure living-wage jobs, you will find 22.9% of American workers are functionally unemployed.

The most recent U.S. Consumer Price Index rose by its lowest level since March 2021, which to the casual observer, is a sign that inflation is moderating. In an era where the cost of living continues to rise, accurately measuring inflation is not just essential but critical to safeguard Americans’ financial security and well-being.

The truth is the plight of the average low- and middle-income family has been so dismal for so long we welcome any hint of good news with unabashed optimism. This in itself should be a wakeup call and a signal to policymakers to maintain the momentum we have seen in recent months

It is possible that the lived experience is worse than official employment and inflation data imply.

Yes, the economy is better, but compared to what? Compared to an unprecedented pandemic that shut down the global economy. Sadly, if we look at the numbers — the real numbers — middle- and lower-income families have been losing ground for at least two decades.

As Americans look ahead to another Independence Day and a likely contentious 2024 presidential election, many are feeling fiscal pain as the prices of food, shelter, healthcare and transportation climb higher than their paychecks.

As the market ebbs in the wake of overlapping crises, how can a modern American Industrial strategy transform key economic sectors, strengthen supply chains, empower workers, and help build the American economy from the ground up?

It’s common knowledge that Buffalo Niagara has lagged the rest of the nation when it comes to job recovery after the pandemic. The most recent Buffalo News analysis in late April showed the region is still some 13,000 jobs short of pre-pandemic levels, making the local recovery the 10th slowest among the top 100 metropolitan areas.

How achievable is the American Dream? It’s an emotional question at the core of our national identity. To answer that, the Ludwig Institute for Shared Economic Prosperity has constructed a “Minimal Quality of Life Index.”

Some say that the GDP’s consumption, gross investment, and government components measure our well-being. Others, though, suggest alternatives. Over at the Ludwig Institute for Shared Economic Prosperity, they’ve been keeping an eye on the little things in life that make a big difference.

While the cost of living is up overall, the cost of living well has been falling, according to an innovative index that measures the cost of bare recreational necessities, like short vacations and money for gifts and holidays.

When inflation finally comes under control, everyone will rightfully celebrate. But even as Washington and Wall Street collectively exhale, policymakers will need to take some time to understand why 2021’s prevailing economic wisdom proved so wrong.

“Consumers who weren’t able to make ends meet are just digging themselves a deeper and deeper hole with the higher interest rates,” said Philip Cornell, economist at LISEP.

Instead of creating a new bureaucracy every time a new scam shows up, Congress should empower existing financial regulators.

How do the CPI and Unemployment Rate fall short of measuring our economic realities?

The dust has settled from the 2022 midterm elections, and there were many lessons to be learned. One of those lessons should be blatantly obvious, best stated by the infamous fictitious newscaster Howard Beale: folks are “mad as hell, and they’re not going to take it anymore.”

Middle- and low-income Americans are materially worse off over at least the last two decades than government headline statistics would have us believe.

The methods for measuring who is “working” or “not working” are based on a time in the 1930s when people either had a factory, technical or educational job, or didn't at all. “Today, it's a much more complex environment,” Gene Ludwig says.

Do we really understand what’s happening in the economic lives of regular Americans? Gene Ludwig, founder of the Ludwig Institute for Shared Economic Prosperity, discusses how and why we should pay attention to different economic indicators.

Prevailing economic analysis remains more problematic than the parable of the blind men and the elephant. Several of the government-produced indicators that make monthly headlines purportedly speak to one small aspect of present reality, but none describe our circumstances as a whole.

Several key government-reported headline statistics present a distorted view of reality for most Americans, with the impact extending far beyond Wall Street. And it can have dire consequences — particularly when those numbers drive economic policy. Look no further than the Federal Reserve's recent decision to hike interest rates.

Why Washington needs to wake up to the crisis that’s looming in the nonbank financial sector.

Former Comptroller of the Currency Gene Ludwig is urging federal regulators to use their authority under the Community Reinvestment Act to give banks more tools to extend credit to low- and moderate-income individuals during economic downturns.

The latest numbers for low- and middle-income families held some good news regarding living-wage job growth, as well as median weekly earnings. But the double punch of inflation, combined with interest rate increases by the Fed, will most likely portend a concerning economic landscape for LMI families in the months ahead.

Former Comptroller of the Currency Gene Ludwig believes the combination of high inflation and rising interest rates present unique risks to the banking industry. Ludwig expects that higher interest rates will lead to more expensive borrowing for many businesses while also increasing their operating costs.

Wednesday’s consumer-price index report showed a 9.1% year-over-year jump. Following similar news last month, the Federal Reserve increased interest rates by 0.75 percentage point. This spells double trouble for middle- and low-income Americans: increased expenses for the former and job losses from the latter.

“For the average, middle-to-low income Americans, life is getting more difficult,” said Gene Ludwig, founder of the Ludwig Institute for Shared Economic Prosperity, an economic research group. In recent months, “it’s been getting worse significantly above expectations.”