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Not just a typographical change: Why Brookings is capitalizing Black

Brookings is adopting a long-overdue policy to properly recognize the identity of Black Americans and other people of ethnic and indigenous descent in our research and writings. This update comes just as the 1619 Project is re-educating Americans about the foundational role that Black laborers played in making American capitalism and prosperity possible. Without Black…

       




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Youth unemployment in Egypt: A ticking time bomb

Earlier this week, a satirical Facebook post announced that the Egyptian Army engineers have developed an Egyptian dollar to combat the continued rise of the U.S. dollar. The new and improved $100 note features Egyptian President Abdel-Fattah el-Sissi’s photo instead of Benjamin Franklin’s. Another post shows a video of Karam, a simple man from upper Egypt, revealing his secret […]

      
 
 




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Taking the off-ramp: A path to preventing terrorism

      
 
 




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Taking the long view: Budgeting for investments in human capital


Tomorrow, President Obama unveils his last budget, and we’re sure to see plenty of proposals for spending on education and skills. In the past, the Administration has focused on investments in early childhood education, community colleges, and infrastructure and research. From a budgetary standpoint, the problem with these investments is how to capture their benefits as well as their costs.

Show me the evidence

First step: find out what works. The Obama Administration has been emphatic about the need for solid evidence in deciding what to fund. The good news is that we now have quite a lot of it, showing that investing in human capital from early education through college can make a difference. Not all programs are successful, of course, and we are still learning what works and what doesn’t. But we know enough to conclude that investing in a variety of health, education, and mobility programs can positively affect education, employment, and earnings in adulthood.

Solid investments in human capital

For example:

1. Young, low-income children whose families move to better neighborhoods using housing vouchers see a 31 percent increase in earnings;

2. Quality early childhood and school reform programs can raise lifetime income per child by an average of about $200,000, for at an upfront cost of about $20,000;

3. Boosting college completion rates, for instance via the Accelerated Study in Associate Programs (ASAP) in the City University of New York, leads to higher earnings.

Underinvesting in human capital?

If such estimates are correct (and we recognize there are uncertainties), policymakers are probably underinvesting in such programs because they are looking at the short-term costs but not at longer-term benefits and budget savings.

First, the CBO’s standard practice is to use a 10-year budget window, which means long-range effects are often ignored. Second, although the CBO does try to take into account behavioral responses, such as increased take-up rates of a program, or improved productivity and earnings, it often lacks the research needed to make such estimates. Third, the usual assumption is that the rate of return on public investments in human capital is less than that for private investment. This is now questionable, especially given low interest rates.

Dynamic scoring for human capital investments?

A hot topic in budget politics right now is so-called “dynamic scoring.” This means incorporating macroeconomic effects, such as an increase in the labor force or productivity gains, into cost estimates. In 2015, the House adopted a rule requiring such scoring, when practicable, for major legislation. But appropriations bills are excluded, and quantitative analyses are restricted to the existing 10-year budget window.

The interest in dynamic scoring is currently strongest among politicians pushing major tax bills, on the grounds that tax cuts could boost growth. But the principles behind dynamic scoring apply equally to improvements in productivity that could result from proposals to subsidize college education, for example—as proposed by both Senator Sanders and Secretary Clinton. Of course, it is tough to estimate the value of these potential benefits. But it is worth asking whether current budget rules lead to myopia in our assessments of what such investments might accomplish, and thus to an over-statement of their “true” cost.

Image Source: © Jonathan Ernst / Reuters
     
 
 




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One third of a nation: Strategies for helping working families


Employment among lower-income men has declined by 11 percent since 1980 and has remained flat among lower-income women. Men and women in the top and middle of the income distribution, on the other hand, have been working as much or more since 1980, creating a growing “work gap” in labor market income between haves and have-nots.   

This paper simulates the effect of five labor market interventions (higher high school graduation rate, minimum wage increases, maintaining full employment, seeing all household heads work full time, and virtual marriages between single mothers and unattached men) on the average incomes of the poorest one-third of American households. They find that the most effective way to increase average incomes of the poorest Americans would be for household heads to work full time, whereas the least effective intervention would be increasing education.

In terms of actual impact on incomes, the simulation of all household heads working full time at their expected wage increased average household earnings by 54 percent from a baseline of $12,415 to $19,163. The research also suggests that even if all household heads worked just some—at expected wages or hours—average earnings would still increase by 16 percent.

The least effective simulation was increasing the high school graduation rate to 90 percent and having half of those “newly” graduated go on to receive some form of post-secondary education. The authors note that the low impact of increasing education on mobility is likely because only one in six of bottom-third adults live in a household in which someone gains a high school degree via the intervention.

Because single parents are disproportionately represented among low-income families, Sawhill and coauthors also explored the impact of adding a second earner to single-parent families through a simulation that pairs low-income, single-mother household heads with demographically similar but unrelated men. That simulation increased the average household earnings of the bottom-third only modestly, by $508, or about 4 percent.

Efforts to increase employment among heads of the poorest households must take into consideration why those household heads aren’t working, they note. According to data from the 2015 Census, the most cited reason for women not working is “taking care of home and family” and for men it is being “ill or disabled.”  

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Image Source: © Stephen Lam / Reuters
      
 
 




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Around the halls: What Brookings experts hope to hear in the Iowa debate

Iran and the recent the U.S. strike that killed Quds Force commander Qasem Soleimani will loom large for the Democratic candidates participating in the debate in Iowa. It may be tempting for the candidates to use this issue primarily as an opportunity to criticize the current administration and issue vague appeals for a return to…

       




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Around the halls: Brookings experts on the Middle East react to the White House’s peace plan

On January 28 at the White House, President Trump unveiled his plan for Middle East peace alongside Israeli Prime Minister Benjanim Netanyahu. Below, Brookings experts on the peace process and the region more broadly offer their initial takes on the announcement. Natan Sachs (@natansachs), Director of the Center for Middle East Policy: This is a…

       




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Catalytic development: (Re)making walkable urban places

Over the past several decades, demographic shifts and the rise of the knowledge economy have led to increasing demand for more walkable, mixed-use urban places.  Catalytic development is a new model of investment that takes a large scale, long-term approach to recreating such communities. The objectives of this model are exemplified in Amazon’s RFP for…

       




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Rethinking unemployment insurance taxes and benefits

       




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Rethinking Cuba: New opportunities for development


Event Information

June 2, 2015
9:00 AM - 2:30 PM EDT

Saul/Zilkha Rooms
Brookings Institution
1775 Massachusetts Avenue NW
Washington, DC 20036

Register for the Event

Para Español, hacer clic aquí



On December 17, 2014, President Barack Obama and President Raúl Castro announced that the United States and Cuba would seek to reestablish diplomatic relations. Since then, the two countries have engaged in bilateral negotiations in Havana and Washington, the United States has made several unilateral policy changes to facilitate greater trade and travel between the two countries, and bipartisan legislation has been introduced in the U.S. Congress to lift the travel ban. Meanwhile, conversations are ongoing about ending the 50-plus-year embargo and Cuba has continued the process of updating its economic system, including establishing new rules for foreign investment and the emerging private sector.

In light of the significant shifts underway in the U.S.-Cuba relationship, new questions arise about Cuba’s development model, and its economic relations with the region and the world. On Tuesday, June 2, the Latin America Initiative at Brookings hosted a series of panel discussions with various experts including economists, lawyers, academics, and practitioners to examine opportunities and challenges facing Cuba in this new context. Panels examined macroeconomic changes underway in Cuba, how to finance Cuba’s growth, the emerging private sector, and themes related to much-needed foreign investment.

Join the conversation on Twitter using #CubaGrowth

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Audio

Transcript

Event Materials

     
 
 




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Brookings experts on Trump’s UNGA speech

On September 25, 2018, President Trump delivered his second address to the United Nations General Assembly. The speech was highly anticipated in light of President Trump’s often skeptical view of international institutions and multilateral cooperation, as well as recent tensions over U.S.-China trade, the future of the Iran nuclear deal and talks with North Korea,…

       




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TreeHugger Radio #201: A Greener iCloud, Obama on Gas, Talking Plants, and Doomsday Dating

This week, Jacob and Brian talk about a greener Apple Inc., crazy-ass weather, Obama's oil and gas issues, and a dating site for the doomsday crowd.




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3 simple sneaky ingredient swaps for healthier baking

Healthy, wholesome baked goods need not taste like cardboard and molasses when these substitutions are made.




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Thinking is working, too!

Quiet solitude, or 'fallow time', should be viewed as an essential part of the work cycle.




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Ollie the jailbreaking bobcat on the lam from National Zoo

The 25-pound lady bobcat was last seen on Monday morning.




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My totally unscientific ranking of public transit systems

The New York subway, The Los Angeles Metro, and more ranked by someone who travels a lot but never drives.




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Woosh Water is reinventing the drinking fountain

Water conservation is obviously a huge concern in Israel and the rest of the Middle East. An interesting startup called Woosh Water is helping conserve water and reduce plastic use by reinventing the public drinking fountain with a high-tech solution.




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Utilities are apparently freaking out, and we are all to blame

Efficiency and conservation aren't just about your personal footprint. They're about reaching tipping points.




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Larch Corner is a Passivhaus wooden wonder that shows how we should be thinking about carbon

Mark Siddall of LEAP measures and calculates everything, thinks about it, and then calculates it again.




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Thai Tourist Trade Contributing to Burma Elephant Trafficking

A new video from the Ecologist Film Unit shows how baby elephants are being smuggled into Thailand from Burma for tourism.




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Is there a difference between hiking in built-up areas vs. wilderness?

Researchers in Austria put this question to the test.




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Walking is urban epoxy

It supports economic growth, social development, and environmental stewardship.




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Is walking the secret to original and creative ideas?

We should follow in the footsteps of many great thinkers and implement regular rambles into our lives.




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After 139 years, General Electric stops making light bulbs

There will be indignation, but this is the result of one of the most successful transformations of a market in our lifetime.




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Arched basement coworking space offers inspiring 'rain of light'

An old basement is transformed into a beautiful new shared multipurpose space for working, learning and leisure.




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Who's Looking Out for Your Lungs? Industry and Legislators Pressing EPA to Drop Tighter Ozone Standards

You can't blame them for trying: With the White House set to change hands in less than a year's time - likely bringing on board a more eco-friendly administration - industry groups have been pressing the EPA to squelch stricter air-quality standards




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Ozone hole is officially shrinking, proof that international treaties can be effective

New NASA study offers first direct proof that the ozone hole is recovering thanks to the Montreal Protocol treaty and the international ban on CFCs.




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Artist Creates Cloud Making Machine to Test Geoengineering "Limits of Knowledge"

Inspired by geoengineering techniques, an artist creates a personal cloud-forming machine to make a point.




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195 nations agree to groundbreaking Paris climate deal

Today, the United Nations climate talks reached an agreement, and committed to fighting devastating levels of climate change.




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TH Forums Highlights: Taking Green Action, Is Fur Green? + More

1) In a popular topic we've visited several times, Forums user moseph is "wondering, big or small, what is




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8 Celebrity Eco-Businesses We Can't Stop Talking About

While we've seen many celebrities jumping on the green bandwagon, we've also seen them doing it for the real deal. Many have been eco-conscious for years--some are just realizing how important it is to promote a sustainable




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It's time to stop cars from making legal right turns on red lights

It was actually introduced to save fuel, but there have been unintended consequences.




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7 Shocking Facts About Your Thanksgiving Turkey

From the 'know where you food comes from' file, the truth behind your turkey dinner.




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What a diverted trip has taught me about packing

You never know what climate you may end up in...




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Looking at trees can reduce problematic cravings

Having a view of green space or access to a garden or park is linked to lower frequency and strength of cravings, study finds.




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Listen to the voices of Thomas Edison's spooky talking dolls from 1890

Considered too fragile to ever be played again, the recordings have been newly reconstructed ... and they are wonderfully creepy.




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The shocking truth about organic vs conventional packaged foods

An estimated 2,000 synthetic chemicals can be used in conventional packaged foods; for organic the number is 40.




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Is Apple working on a fuel cell-powered MacBook?

A new patent filing suggests that the tech giant has fuel cells in mind for future computers and gadgets.




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Is LEED Breaking Up with FSC-Certified Wood?

After a long-lasting and loving monogamous relationship between the US Green Building Council and the Forest Stewardship Council, it seems the USGBC is considering, not a break up, but definitely thinking




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Breaking the seed bank to feed the future

Can science use the genes engineered by nature instead of genetic engineering in the face of a pending food crisis?




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Taking a close look at insecticide-producing crops

Are crops that produce their own pesticides as scary as they sound?




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NHTSA to Look Into 2010 Toyota Prius Braking Problems

Photo: Toyota The Japanese Government Told Toyota to do the Same Now's not a good time for Toyota, and it's not a good time for the 2010 Prius hybrid, a kind of "halo" car for the company. Yesterday, I wrote about an acceleration problem that Apple




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Toyota to Recall the 2010 Prius in U.S. and Japan for Braking Problems

Photo: Toyota Update: Kaizen Fail: Toyota Recalls 437,000 Hybrids Worldwide, Mostly 2010 Prius Models 311,000 Third Generation Prius Hybrids to be Recalled by Toyota It seems like Toyota has yet to hit rock bottom. Last week the NHTSA announced that it




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Looking for an Affordable Mercedes? Try the Hybrid

OK, affordable might be a bit of an overstatement, unless you're one of the richer tree huggers out there. We've told you before about Mercedes-Benz's hybrid S400,




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Steven M. Johnson's adresses the problems of the tiny house/ shedworking movement

In one cartoon he solves a long list of issues that have kept it from going mainstream.




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Keep on Trucking: How the Food Truck Concept is Spreading To Other Uses

It's hard to tell if this is a good thing or not, but mixing new tech with old trucks is changing business.




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Keep on Trucking: More Ideas Going Mobile, From DNA Testing to 3D Printing

The future is mobile as businesses dematerialize and hit the road




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TreeHugger is looking for interns

We're looking for treehuggers with a nose for a story.




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Drinking tea affects women differently from men

Still unknown: are the effects due to women drinking more tea than men?




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Japan Taking the Easy Way Out to Meet Kyoto Obligations

Could Japan be attempting to shirk its obligations under the Kyoto Protocol by purchasing lower-grade carbon credits? Having pledged to cut emissions to 6% below 1990 levels, the country is now racing to make ends meet as