Greg Mankiw writes:
The Economic Report of the President was released today. A friend draws my attention to Table 1-3 on page 34, which presents several historical counterfactuals. It finds:
1. If productivity growth had not slowed after 1973, the median household would have $30,000 of additional income today.
2. If income inequality had not increased after 1973, the median household would have $9,000 of additional income today.
So, which is the bigger problem?