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The OECD writes:. What does all of this imply about how to address concerns over the middle class?

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The direct concerns over the middle class involve a desire for a labor market where workers find it more straightforward to make a lasting connection with an employer, with health and pension benefits, and prospects for a career path. They involve a desire to be able to afford the consumption goods like housing, education, and health care, which in most countries are either directly run by the government or highly affected by regulation in most of these countries.

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I'm not someone who is reflexively opposed to higher taxes for those with high incomes, but these kinds of concerns over the future of the middle-class are unlikely to be addressed in a sustainable and long-term way by proposals to tax the rich and subsidize the middle class. Laws that seek to command higher wages and benefits, or seek to command lower prices for certain goods, are not a long-term answer either. Actual answers involve thinking in a more detailed way about how labor markets function, and more specifically how they improve productivity while incorporating and training workers.

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There also needs to be more detailed thinking about the rules and practices that governments have set up around the production of housing, health care, and education, and how those rules might be sensibly reformed. Newer Post Older Post Home. Flex Day 2: AM.

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