For decades, policymakers and economists alike have all assumed that a growing economy automatically translates into increased prosperity and improved quality of life for a majority of citizens. This is the theory that “a rising tide lifts all boats.” As the American economy continues to transition in the 21st century, however, it is increasingly clear that economic growth by itself neither lifts all boats nor delivers the benefits to America’s working families that have long been promised.
In a point echoed by a recent BTC report, economic growth just isn’t enough—positive change in Gross Domestic Product (GDP) no longer translates into increased prosperity for all.
…. or meaningful reductions in poverty.