Events

WHOSE GDP? THE WORKING POOR, THE ECONOMY, AND THE PERCEPTION GAP

  • 22 Jan 2020

    12:30-14:00, Large Lecture Room, Nuffield College

  • Comparative Political Economy Seminar   Add to Calendar
Speaker: Timothy Hellwig

Indiana University

This event is part of the Comparative Political Economy Seminar series

(With Dani M. Marinova, Universitat Autònoma de Barcelona)

Economic inequality has increased drastically across advanced industrial democracies and, with it, the range of economic experiences. These changes present a challenge for political economy which gauges the health of the economy with aggregate economic statistics like growth and jobs. Motivated by this challenge, we ask how new economic realities in advanced capitalism matters for how citizens evaluate the national economy. We argue that individuals seek out and apply information on those indicators of economic heath that affect their own lives while discounting those that do not. Applying our reasoning to the case of poverty and poverty risk, we assert that among the working poor, poverty rates provide a more meaningful signal of economic conditions than do conventional macroeconomic indicators. We show that poverty risk exerts a strong effect on economic evaluations. Individuals at high risk of poverty are less informed about standard mac-roeconomic indicators but better informed about national poverty rates. When evaluating macroe-conomic performance, they are more likely to discount conventional economic indicators and base assessments on national poverty rates instead. Results indicate that political economy must depart from familiar but partial indicators and account for the layered economies structuring political behavior.

The Comparative Political Economy Seminar series is convened by Desmond King, Jane Gingrich and David Rueda

Sandwiches will be provided.