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March 28, 2019

Dr. Brian C. Moyer

Director

Bureau of Economic Analysis
4600 Silver Road

Suitland, MD 20746

Dear Director Moyer,

We write to urge the Bureau of Economic Analysis (BEA) to prioritize reporting on Income
Growth Indicators, as requested in the attached language of the report accompanying the
bipartisan Consolidated Appropriations Act of 2019. This important analysis would look beyond
the aggregate measure of Gross Domestic Product (GDP) and provide a breakdown of economic
growth across income groups.

Income inequality in the United States has increased dramatically over the last 40 years, with
economic gains increasingly Concentrated among the most affluent. By contrast, the majority of
Americans have seen incomes and wages stagnate, even as the most closely watched measure of
our nation?s economic health, Gross Domestic Product, paints a rosier picture. Between 2003 and
2005 for example, real GDP grew by more than 3 percent each year, but the average income for
halfof all Americans actually fell during this period. The current practice of relying on top-line
GDP growth as our primary economic indicator overshadows these important trends and fails to
provide a fully accurate assessment of our nation?s economic condition, particularly with respect
to income growth for workers.

The recent appropriations law encourages the BEA to start regularly reporting Income Growth
Indicators, showing how personal income is growing for each decile of income, at least annually
and starting no later than 2020. The estimates should be released alongside national GDP reports.
Establishing these new measures would give us of?cial and timely data to guide policy
discussions and inform policymakers? decisions.

chief economist and staff have already shown that they have the expertise and capability
to produce these statistics, and we are encouraged that they have already conducted historical
analysis on this important topic. We urge BEA to prioritize producing these measures on a more
timely and consistent basis. We also ask that it work to break out income growth within the top
decile, as historical analysis shows that even within the top decile, experiences vary widely.

Please let us know how soon this work can begin, and when the first distributional analyses
likely will be released. Additionally, please inform us if additional legislation or resources are
necessary to improve the accuracy and timeliness of these estimates. We commend the

professional staff of the BEA for the important work they do and look forward to further
supporting their mission. We ask that you report back to us no later than April 12, 2019.

Sincerely,

        

 

 

Charles E. Schumer Calf?olyn
Senate Democratic Leader Vice Chail

 

  

 

Martin I-Iemrich
United States Senator