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Archive for the ‘US and Global Economy: Trends and Findings’ Category


Real Time Coverage @BIOConvention #BIO2019: Keynote Address Jamie Dimon CEO @jpmorgan June 5 Philadelphia

Reporter: Stephen J. Williams, PhD @StephenJWillia2

 

  • Dr Janet Woodcock from FDA was given the BIO Heritage award for leading the FDA from safety focus of 90s to the Voice of the Patient. She became a champion for advocacy groups
  • Governor Phil Murphy, Governor of New Jersey, received the Governor of the Year Award.  New Jersey known as medicine chest of the world, have first 3D printed drug on market and number two in biotech and number one on drug approvals.  We must do more to foster stem education.  It will take private and public capital investment.  New Jersey matches federal dollars and had doubled the angel investor tax credit.
  • Dr. Kakkis CEO of Ultragenix wins the Genzyme Henri Termeer Award for visionary work.  Dr. Termeer recently passed.  Dr. Kakkis is awarded for work with patients of rare diseases and help formulating legislation to help patients with rare disease have access to investigational drugs quickly.
  • Dr. Jeremy Levin from OVID named new chair of BIO

Interview with Jamie Dimon, CEO of JPMorgan

  • Mr Dimon had recently survived throat cancer and now has a renewed dedication to improving people’s lives.  With Amazon had embarked on a nonprofit experimental model to streamline healthcare for their employees.  He said the hardest part of going through cancer was telling his parents and children.
  • On the bailout he said it was a lie all banks needed TARP but could not just give to some and not all.  He says the financial system in US is very solid so next downturn will not come from financial sector and never is from geopolitical but trade issues could be a catalyst. Policy usually always does the opposite of what is intended.  He announced no intention of running for President of US.
  • We need to keep a growth agenda which includes education and infrastructure, without these competitive business tax relief does no account for much.  We need a better conversation of how government handles finances
  • Immigration, education very important.  Higher education needs to reduce costs and incentivize the people they bring in to stay here.
  • on healthcare:  JPM had reduced the deductables to zero for workers making $60,000 or less

Please follow LIVE on TWITTER using the following @ handles and # hashtags:

@Handles

@pharma_BI

@AVIVA1950

@BIOConvention

# Hashtags

#BIO2019 (official meeting hashtag)

Other Article on this Open Access Journal on Global Partnerships, Global Investing and JPMorgan Include:

 

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We’re seeing an acceleration of M&A activity and a growing IPO pipeline through the end of 2016, but the bar remains high.

 

Reporter: Aviva Lev-Ari, PhD, RN

 

Here’s what one top VC firm predicts will happen to tech startups in 2017

Accel is an early & growth-stage venture capital firm and is known for its investments in Facebook, Slack, and Dropbox. This is the firm’s annual presentation on what the tech environment is like for founders today and what will happen in 2017, republished with permission.

  1. It’s an incredible time to be a technology entrepreneur.
  2. A rising “new guard” are officially the most valuable companies in the world: Apple, Alphabet/Google, Microsoft, Amazon, Facebook.
  3. But of course, it’s important to stay disciplined.
  4. We’re seeing an acceleration of M&A activity and a growing IPO pipeline through the end of 2016, but the bar remains high.

 

*In order as of 11/22/16:

  • Apple — $596B
  • Alphabet/Google — $551B
  • Microsoft — $478B
  • Amazon — $372B
  • Facebook — $348B

**Bloomberg dug into the numbers here too.

 

SOURCE

http://www.businessinsider.com/accel-2017-vc-predictions-2016-11

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The 16th annual EmTech MIT – A Place of Inspiration, October 18-20, 2016, Cambridge, MA

MIT Media Lab
Building E14
75 Amherst Street

(Corner of Ames and Amherst)
Cambridge, MA 02139

Conference Location: Entire 6th floor of Building E14

EmTech MIT Brings The Award-Winning Journalism of MIT Technology Review To Life

The 16th annual EmTech MIT gathers preeminent thought leaders, researchers and business leaders to examine the most significant themes in emerging technologies, including:

– Rethinking Energy

– Virtual Reality, Augmented Life

– Artificial intelligence

– Global Connectivity

– Engineering a Healthy Planet

– Spotlight talks on the 10 Breakthrough Technologies

– Celebration of the 2016 Innovators Under 35

ANNOUNCEMENT

Leaders in Pharmaceutical Business Intelligence (LPBI) Group, Boston

pharma_bi-background0238

will cover in REAL TIME

The 16th annual EmTech MIT – A Place of Inspiration, October 18-20, 2016, Cambridge, MA

http://events.technologyreview.com/emtech/16/

In attendance, streaming LIVE using Social Media

Aviva Lev-Ari, PhD, RN

Editor-in-Chief

http://pharmaceuticalintelligence.com

@pharma_BI

@AVIVA1950

 All Speakers

SOURCE

http://events.technologyreview.com/emtech/16/#section-about

Featured Speakers

 

  • Nora
    Ayanian

    Gabilan Assistant Professor, University of Southern California

    2016 Innovator Under 35

  • Amir
    Banifatemi

    Prize Lead, X Prize

    Incentivizing Innovative Approaches & Collaboration in A.I.

  • Muyinatu
    Bell

    Assistant Professor, Johns Hopkins University

    2016 Innovator Under 35

  • Brian
    Bergstein

    Executive Editor, MIT Technology Review

  • Nessan
    Bermingham

    Chief Executive Officer, President and Founder, Intellia Therapeutics

    The Potential for Genome Editing Technology to Transform Medicine

  • Dinesh
    Bharadia

    Postdoctoral Associate, MIT CSAIL

    2016 Innovator Under 35

  • Heather
    Bowerman

    CEO & Founder, Dot Laboratories

    2016 Innovator Under 35

  • Elizabeth
    Bramson-Boudreau

    Chief Operating Officer, MIT Technology Review

  • Qing
    Cao

    Research Staff Member, IBM T.J. Watson Research Center

    2016 Innovator Under 35

  • Jagdish
    Chaturvedi

    Director, Clinical Innovations, InnAccel

    2016 Innovator Under 35

  • David
    Cox

    Assistant Professor of Molecular and Cellular Biology and of Computer Science, Harvard University

    Building Computer Vision Systems Inspired by the Brain

  • Tom
    Davenport

    President’s Distinguished Professor of Information Technology & Management, Babson College

    Presented by RAGE Frameworks

  • Stefano
    Domenicali

    CEO, Automobili Lamborghini

    Presented by the Italian Trade Agency

  • Kevin
    Esvelt

    Assistant Professor, MIT Media Lab

    The Technology Driving Gene Drives

  • Vivian
    Ferry

    Assistant Professor, University of Minnesota

    2016 Innovator Under 35

  • Wei
    Gao

    Postdoctoral Fellow, University of California, Berkeley

    2016 Innovator Under 35

  • Dileep
    George

    Cofounder, Vicarious

    Artificial Intelligence At Work

  • Shyam
    Gollakota

    Assistant Professor, University of Washington

    10 Breakthrough Technologies of 2016: Power from the Air

  • Meron
    Gribetz

    CEO, Meta

    2016 Innovator Under 35

  • Jiawei
    Gu

    Cofounder, Ling Robotics

    2016 Innovator Under 35

  • Rachel
    Haot

    Managing Director, 1776

    Incubating Technical Solutions with Global Impact

  • Alex
    Hegyi

    Member of Research Staff, PARC

    2016 Innovator Under 35

  • Katherine
    High

    Cofounder, President and Chief Scientific Officer, Spark Therapeutics

    Gene Therapy: A New Era of Medicine

  • Christine
    Ho

    CEO, Imprint Energy, Inc.

    2016 Innovator Under 35

  • Ehsan
    Hoque

    Assistant Professor, University of Rochester

    2016 Innovator Under 35

  • Solomon
    Hsiang

    Chancellor’s Associate Professor of Public Policy, University of California, Berkeley

    Addressing the Effects of Climate Change

  • Karl
    Iagnemma

    CEO and Cofounder, nuTonomy

    Intelligent Machines: Autonomous Cars

  • Sangbae
    Kim

    Associate Professor of Mechanical Engineering, MIT

    Robots at Work

  • Samay
    Kohli

    Chief Executive Officer, GreyOrange

    2016 Innovator Under 35

  • Kendra
    Kuhl

    CTO, Opus 12

    2016 Innovator Under 35

  • Maithilee
    Kunda

    Assistant Professor, Vanderbilt University

    2016 Innovator Under 35

  • Stephanie
    Lampkin

    Founder & CEO, Blendoor

    2016 Innovator Under 35

  • Desmond
    Loke

    Assistant Professor, Singapore University of Technology and Design

    2016 Innovator Under 35

  • Evan
    Macosko

    Instructor, Harvard Medical School

    2016 Innovator Under 35

  • Yael
    Maguire

    Engineering Director, Facebook Connectivity Lab

    Expanding the Global Impact of Internet Connectivity

  • Vikram
    Mahidhar

    SVP, Artificial Intelligence Solutions, RAGE Frameworks

    Presented by RAGE Frameworks

  • Marcela
    Maus

    Director of Cellular Immunotherapy, Massachusetts General Hospital Cancer Center

    The Promise of Cancer Immunotherapy

  • Pranav
    Mistry

    Global Vice President of Research, Samsung

    Envisioning What’s Next for Virtual Reality

  • Jason
    Pontin

    Editor in Chief and Publisher, MIT Technology Review

  • Ramesh
    Raskar

    Director, MIT Media Lab Camera Culture Group

    Presented by Lemelson-MIT

  • Alberto Maria
    Sacchi

    Board Member & Past President, Federmacchine

    Presented by the Italian Trade Agency

  • Don
    Sadoway

    Professor, Materials Science & Engineering, MIT

    Providing Power for a Growing Global Population

  • Ruslan
    Salakhutdinov

    Associate Professor, Carnegie Mellon University

    The Promise and Limitations of Machine Learning

  • Kelly
    Sanders

    Assistant Professor, University of Southern California

    2016 Innovator Under 35

  • Michele
    Scannavini

    President, Italian Trade Agency

    Presented by the Italian Trade Agency

  • Stefanie
    Tellex

    Assistant Professor, Computer Science, Brown University

    10 Breakthrough Technologies of 2016: Robots That Teach Each Other

  • Ronaldo
    Tenorio

    CEO, Hand Talk

    2016 Innovator Under 35

  • Sonia
    Vallabh

    PhD Student, Prion Scientist, Broad Institute

    2016 Innovator Under 35

  • Cyrus
    Vance Jr.

    Manhattan District Attorney, Manhattan District Attorney’s Office

    Security & Privacy in the Connected Era

  • Oriol
    Vinyals

    Research Scientist, Google DeepMind

    2016 Innovator Under 35

  • Aleksandra
    Vojvodic

    Assistant Professor, University of Pennsylvania

    2016 Innovator Under 35

  • Padmasree
    Warrior

    CEO, NextEV

    Imagining Clean, Connected Transportation

  • Jean
    Yang

    Assistant Professor, Carnegie Mellon University

    2016 Innovator Under 35

  • Yihui
    Zhang

    Associate Professor, Tsinghua University

    2016 Innovator Under 35

  • Jia
    Zhu

    Professor, Nanjing University

    2016 Innovator Under 35

 

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Yesterday and today are not the same

Larry H. Bernstein

LPBI

 

The New Generation Gap

https://www.project-syndicate.org/commentary/new-generation-gap-social-injustice-by-joseph-e–stiglitz-2016-03

Joseph E. Stiglitz

Joseph E. Stiglitz, recipient of the Nobel Memorial Prize in Economic Sciences in 2001 and the John Bates Clark Medal in 1979, is University Professor at Columbia University, Co-Chair of the High-Level Expert Group on the Measurement of Economic Performance and Social Progress at the OECD, and Chief Economist of the Roosevelt Institute. A former senior vice president and chief economist of the World Bank and chair of the US president’s Council of Economic Advisers under Bill Clinton, in 2000 he founded the Initiative for Policy Dialogue, a think tank on international development based at Columbia University. His most recent book is Rewriting the Rules of the American Economy.

NEW YORK – Something interesting has emerged in voting patterns on both sides of the Atlantic: Young people are voting in ways that are markedly different from their elders. A great divide appears to have opened up, based not so much on income, education, or gender as on the voters’ generation.

There are good reasons for this divide. The lives of both old and young, as they are now lived, are different. Their pasts are different, and so are their prospects.

The Cold War, for example, was over even before some were born and while others were still children. Words like socialism do not convey the meaning they once did. If socialism means creating a society where shared concerns are not given short shrift – where people care about other people and the environment in which they live – so be it. Yes, there may have been failed experiments under that rubric a quarter- or half-century ago; but today’s experiments bear no resemblance to those of the past. So the failure of those past experiments says nothing about the new ones.

Older upper-middle-class Americans and Europeans have had a good life. When they entered the labor force, well-compensated jobs were waiting for them. The question they asked was what they wanted to do, not how long they would have to live with their parents before they got a job that enabled them to move out.

That generation expected to have job security, to marry young, to buy a house – perhaps a summer house, too – and finally retire with reasonable security. Overall, they expected to be better off than their parents.

While today’s older generation encountered bumps along the way, for the most part, their expectations were met. They may have made more on capital gains on their homes than from working. They almost surely found that strange, but they willingly accepted the gift of our speculative markets, and often gave themselves credit for buying in the right place at the right time.

Today, the expectations of young people, wherever they are in the income distribution, are the opposite. They face job insecurity throughout their lives. On average, many college graduates will search for months before they find a job – often only after having taken one or two unpaid internships. And they count themselves lucky, because they know that their poorer counterparts, some of whom did better in school, cannot afford to spend a year or two without income, and do not have the connections to get an internship in the first place.

Today’s young university graduates are burdened with debt – the poorer they are, the more they owe. So they do not ask what job they would like; they simply ask what job will enable them to pay their college loans, which often will burden them for 20 years or more. Likewise, buying a home is a distant dream.

These struggles mean that young people are not thinking much about retirement. If they did, they would only be frightened by how much they will need to accumulate to live a decent life (beyond bare social security), given the likely persistence of rock-bottom interest rates.

In short, today’s young people view the world through the lens of intergenerational fairness. The children of the upper middle class may do well in the end, because they will inherit wealth from their parents. While they may not like this kind of dependence, they dislike even more the alternative: a “fresh start” in which the cards are stacked against their attainment of anything approaching what was once viewed as a basic middle-class lifestyle.

These inequities cannot easily be explained away. It isn’t as if these young people didn’t work hard: these hardships affect those who spent long hours studying, excelled in school, and did everything “right.” The sense of social injustice – that the economic game is rigged – is enhanced as they see the bankers who brought on the financial crisis, the cause of the economy’s continuing malaise, walk away with mega-bonuses, with almost no one being held accountable for their wrongdoing. Massive fraud was committed, but somehow, no one actually perpetrated it. Political elites promised that “reforms” would bring unprecedented prosperity. And they did, but only for the top 1%. Everyone else, including the young, got unprecedented insecurity.

These three realities – social injustice on an unprecedented scale, massive inequities, and a loss of trust in elites – define our political moment, and rightly so.

More of the same is not an answer. That is why the center-left and center-right parties in Europe are losing. America is in a strange position: while the Republican presidential candidates compete on demagoguery, with ill-thought-through proposals that would make matters worse, both of the Democratic candidates are proposing changes which – if they could only get them through Congress – would make a real difference.

Were the reforms put forward by Hillary Clinton or Bernie Sanders adopted, the financial system’s ability to prey on those already leading a precarious life would be curbed. And both have proposals for deep reforms that would change how America finances higher education.

But more needs to be done to make home ownership possible not just for those with parents who can give them a down payment, and to make retirement security possible, given the vagaries of the stock market and the near-zero-interest world we have entered. Most important, the young will not find a smooth path into the job market unless the economy is performing much better. The “official” unemployment rate in the United States, at 4.9%, masks much higher levels of disguised unemployment, which, at the very least, are holding down wages.

But we won’t be able to fix the problem if we don’t recognize it. Our young do. They perceive the absence of intergenerational justice, and they are right to be angry.

Read more at https://www.project-syndicate.org/commentary/new-generation-gap-social-injustice-by-joseph-e–stiglitz-2016-03#vxQE74VR3kfAWbf1.99

 

 

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Bad News this Week for Biotech Deals?

 

Curator: Stephen J. Williams, Ph.D

 

Last week in biotech ( 3/7-3/11/2016) had a plethora of disappointing stories related to biotech drug development and hits to biotech investing and VC.  Since October of 2016 the biotech index has lost 35% to today (see Biotech ETFs Hit 52-Week Lows: Time to Buy?) however were the hit back in October a signal of some of the listed events below (as shown on Biospace News) and includes:

  •  an long-time biotech startup with failure of mesothelioma trial who has struggled in the past
  • multiple clinical trial failures forces the de-listing of a NASDAQ company (other biotechs this year had similar problems)
  • more problems with drug development for Duchenne’s Muscular Dystrophy

GlaxoSmithKline dumps Five Prime’s cancer drug in the midst of Phase I

March 11, 2016 | By Damian Garde

GSK gave Five Prime a 180-day notice that it’s nixing its license to the company’s FP-1039, which is designed to block the spread of cancer by interrupting protein signaling. The decision follows GSK’s January move to stop developing FP-1039 in squamous non-small cell lung cancer due to the rise of immuno-oncology therapies from Merck ($MRK), Bristol-Myers Squibb ($BMY) and others, citing a “change in treatment paradigms.”GlaxoSmithKline ($GSK) is cutting ties with Five Prime Therapeutics’ ($FPRX) in-development cancer therapy, backing out in the middle of a mesothelioma trial.

Now GSK is set to abandon a drug it inherited through its $3 billion acquisition of Human Genome Sciences in 2012, leaving Five Prime to go it alone in an ongoing Phase Ib study testing FP-1039 against mesothelioma. Five Prime said it plans to work with GSK to complete enrollment in the study, adding that it “continues to be encouraged” by the drug’s potential in mesothelioma.

Embattled Bay Area XOMA  (XOMA) Terminates Gevokizumab Trials, Slashes Headcount by 50%

3/11/2016 6:39:17 AM

March 11, 2016
By Alex Keown, BioSpace.com Breaking News Staff

BERKELY, Calif. – Troubled XOMA Corp. (XOMA) is terminating half of its workforce after a late-stage failure of its experimental drug gevokizumab for treatment of pyoderma gangrenosum, the San Francisco Business Times reported this morning.

Following the announcement, Xoma’s stock is down this morning about 5 percent, trading at 91 cents per share as of this writing.

Xoma said it is interested in divesting itself of gevokizumab. In a statement, the company said several companies have approached Xoma about acquiring the drug. Gevokizumab binds to interleukin-1 beta (IL-1 beta), a pro-inflammatory cytokine. Xoma said it will make all information about the drug and study information available to potential buyers. Gevokizumab has had a troubled history with Xoma. The company has halted several trials with the drug for various diseases, including diabetes and a blinding eye disease, the Times reported. In 2014, Xoma was forced to stop testing gevokizumab as an arthritis treatment after the drug did not show significant benefit against placebo after a six-month period.

Struggling Eleven Biotherapeutics (EBIO) Gets Delisting Notice from Nasdaq After Back-to-Back Clinical Trial Failures

3/10/2016 6:07:38 AM

March 10, 2016
By Mark Terry, BioSpace.com Breaking News Staff

With one piece of bad news after another, Cambridge, Mass.-based Eleven Biotherapeutics Inc. (EBIO) filed a Form 8-Kwith the U.S. Securities and Exchange Commission, addressed a delisting notification it received from the Nasdaq on Mar. 3.

The Nasdaq informed the company that its stock dropped below $1 a share, and that the stockholder equity didn’t comply with the $5,000,000 minimum stockholders’ equity requirement. As a result, it has 180 days to comply with Nasdaq rules.

On Jan. 10, the company announced that its Phase III clinical trial of EBI-005 (isunakinra) for severe allergic conjunctivitis did not meet its primary endpoint.

In May 2015, the company reported that its drug, EBI-005, for moderate to severe dry eye disease, failed to prevent damage to the cornea or reduce eye pain in comparison to the control group.

In a January statement, Abbie Celniker, president and chief executive officer of Eleven Biotherapeutics, said, “We are disappointed that isunakinra failed to meet its primary endpoint, and based on these overall results we see no immediate path forward in allergic conjunctivitis. Our efforts will be focused on submitting an investigational new drug application (IND) for EBI-031 in diabetic macular edema in the first half of 2016.”

EBI-031 was designed for intravitreal delivery using the company’s AMP-Rx platform. The drug blocks both free IL-6 and IL-6 complexed to the soluble IL-6 receptor (IL-6R). The compound is being developed to treat diabetic macular edema (DME) and uveitis.

DMD Setback Prompts Sarepta (SRPT) to Shutter West Coast Location and Consolidate to Massachusetts, 30 Jobs Gone

3/9/2016 6:13:13 AM

March 9, 2016
By Mark Terry, BioSpace.com Breaking News Staff

Cambridge, Mass.-based Sarepta Therapeutics (SRPTannounced yesterday that it was shuttering its research-and-development manufacturing facility in Corvalis, Ore. Most of the employees there are expected to move to Sarepta’s facilities in Andover and Cambridge, Mass. About 30 people are expected to be laid off.

On Jan. 21, Sarepta announced that, with an impending snowstorm on the east coast, the U.S. Food and Drug Administration (FDA)’s meeting to review the company’s New Drug Application (NDA) for eteplirsen to treat Duchenne Muscular Dystrophy (DMD) was postponed.

DMD is a muscle wasting disease caused by mutations in the dystrophin gene. The disease is progressive and generally causes death in early adulthood. Complications include serious heart or respiratory-related problems. It mostly affects boys, about 1 in every 3,500 to 5,000 male children.

On Jan. 15, an FDA advisory committee decided to reschedule the meeting, at which point a recommendation or approval decision will be made. That meeting of the Peripheral and Central Nervous System Advisory Committee has not been rescheduled yet, but Sarepta believes it will be prior to May 26, which is the PDUFA date. The Prescription Drug User Fee Act (PDUFA) is a law that allows the FDA to collect an application fee from drug companies when an NDA or Biologics License Application (BLA) is submitted.

The DMD drug arena has been fraught with failures and bad news this year. San Rafael, Calif.-based BioMarin Pharmaceutical Inc. (BMRN)’s application for its DMD drug Kyndrisa (drisapersen) was turned down by the FDA on Jan. 15. The FDA argued that Kyndrisa didn’t show enough benefit.

On Jan. 25, Cambridge, Mass.-based Akashi Therapeuticsannounced that it had halted its DMD trial for HT-100 after one of its patients developed serious, life-threatening health problems. In that DMD is a serious, life-threatening health problem in itself, it’s not clear if the patient’s problems are directly related to the drug. The patient was receiving the highest dose in the HALO trial, while others in the trial with lower doses were not showing adverse side effects.

 

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Brookings Papers on Economic Activity (BPEA): Wealth and Income Concentration is rising by about half as much as previously thought

Reporter: Aviva Lev-Ari, PhD, RN

 

 

SOURCE

From: “Janice Eberly and Jim Stock, Brookings Institution” <economicstudies@brookings.edu>

Reply-To: <economicstudies@brookings.edu>

Date: Monday, March 14, 2016 at 1:40 PM

To: Aviva Lev-Ari <AvivaLev-Ari@alum.berkeley.edu>

Subject: Challenging Piketty, a “Shadow Stimulus,” and other BPEA Findings

Read new research from the Brookings Papers on Economic Activity.
View this email in your browser here.
The Brookings Papers on Economic Activity

Friends and Colleagues,

We spent Thursday and Friday of last week sitting at Brookings, discussing six new papers with dozens of the world’s top economists and readying the findings to be published in our economics journal, the Brookings Papers on Economic Activity (BPEA).

One of the great things about this twice-yearly conference is that, in the spirit of true academic discussion, it often raises as many questions as it answers.

Here are six things we wanted to share from inside our discussion room:

1. “If this is our technological future, economists aren’t sure it adds up to much.” The Washington Post’s Wonkblog has a great summary of important new research on why we can’t blame the ongoing productivity decline on our inability to measure the benefits of the Internet and other technological innovations.

2. A group of Fed economists challenged what renowned economists Piketty, Saez and others say about the richest 1%. The blue line in the chart below represents the new BPEA estimates. The blue line is still rising—but a lot more slowly. The authors ultimately conclude that wealth and income concentration is rising by about half as much as previously thought.

incomeshare_email.png

3. We debated whether federal lending programs served as a “shadow stimulus.” (h/t Wall Street Journal on the apt phrasing.) These programs, especially housing and student loans, grew dramatically during the Great Recession. There was a lively discussion around a finding that the government’s housing and education credit programs were nearly as large as the 2009 stimulus act (ARRA) and on average three times more effective per dollar of cost at stimulating the economy.

4. Boys whose mothers did not complete high school are even more likely to drop out of high school themselves—if they live in areas with high income inequality. Typical explanations, like school quality, don’t account for this finding. The boys’ academic attainment explains part of it, though, reinforcing the view that interventions to get kids on track early may break the link between inequality and low mobility. This interactive map illustrates the point well.

5. American workers are moving around the labor market less and less, and it’s not because of disruptive technologies. This decline is pervasive across losing a job, finding a job, dropping out of the labor force, and moving from one job to another. The “fluidity rate” has been declining for at least three decades, but a closer look at the rate in different U.S. states shows that the decline in fluidity was smaller in states with more workers in routine jobs displaced by technological advancements. See the chart here.

6. If you’ve ever lived through hyperinflation, you know that very poor people are by necessity very sophisticated about inflation and exchange rates. That’s an observation from a conference participant, but it helps explain a finding that the average Argentinian wasn’t fooled by the government’s notorious manipulation of inflation data from 2007- 2013. David Wessel has moreon this “interesting question…[of] how much public perceptions matter.” As the Fed worries about inflation expectations going forward, the lesson from Argentina is that the general public can be very sophisticated when the stakes get high.

 

If you want to know more about BPEA or the new research submitted to this edition of the journal,visit BPEA on the Brookings website. We’ll be back in the fall with more new findings from leading economists.

 

Sincerely,
Janice Eberly and James Stock
Co-editors, Brookings Papers on Economic Activity
Nonresident Senior Fellows, Economic Studies at Brookings

SOURCE

From: “Janice Eberly and Jim Stock, Brookings Institution” <economicstudies@brookings.edu>

Reply-To: <economicstudies@brookings.edu>

Date: Monday, March 14, 2016 at 1:40 PM

To: Aviva Lev-Ari <AvivaLev-Ari@alum.berkeley.edu>

Subject: Challenging Piketty, a “Shadow Stimulus,” and other BPEA Findings

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