Sending Office: Honorable Carolyn B. Maloney
Dear Democratic Colleague:
I am writing to invite you to be an original
cosponsor of the Measuring Real Income Growth Act of 2018, legislation that would require the Bureau of Economic Analysis (BEA) to publish distributional analyses of the gross domestic product (GDP). Such reports would give policymakers a clearer picture
of how economic growth is distributed among Americans of all income levels, providing a different measure of economic inequality.
The current monthly estimates of
GDP are a useful but imperfect measure of economic well-being because they analyze how fast the economic “pie” is expanding, but don’t reveal how the slices are distributed. Because the current analyses focus only on aggregate figures, we have little data
on how economic growth is spread across income brackets.
This new legislation will require the BEA to disaggregate
GDP so we can analyze growth by income deciles and the top 1 percent of wage earners. This will help provide policymakers the information we need to serve all Americans.
The bill likely will generate much-needed discussion of economic issues. It has been introduced in the Senate by Sen. Chuck Schumer and my colleague on the Joint Economic Committee, Sen. Martin Heinrich. We expect strong support for this initiative from
prominent American economists, think-tanks and other organizations.
I hope I can count on your support for the Measuring Real Income Growth Act of 2018.
CAROLYN B. MALONEY
Senior House Democrat, Joint Economic Committee
e-Dear Colleague version 2.0