Measuring Real Income Growth Act of 2019

I 116TH CONGRESS 1ST SESSION H. R. 707 To require the Bureau of Economic Analysis of the Department of Commerce to provide estimates relating to the distribution of aggregate economic growth across specific percentile groups of income. IN THE HOUSE OF REPRESENTATIVES JANUARY 22, 2019 Mrs. CAROLYN B. MALONEY of New York (for herself, Mr. BEYER, Ms. ADAMS, Mr. TAKANO, Mr. MEEKS, Ms. SCHAKOWSKY, Mr. FOSTER, Ms. WASSERMAN SCHULTZ, Ms. JACKSON LEE, Mrs. DINGELL, Ms. NORTON, Mr. KHANNA, Mr. VEASEY, Mr. SMITH of Washington, Mr. SWALWELL of California, Mr. HASTINGS, Mr. JOHNSON of Georgia, Mr. DESAULNIER, and Mr. GARAMENDI) introduced the following bill; which was referred to the Committee on Oversight and Reform A BILL To require the Bureau of Economic Analysis of the Depart- ment of Commerce to provide estimates relating to the distribution of aggregate economic growth across specific percentile groups of income. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Measuring Real In- 4 come Growth Act of 2019’’. 5 VerDate Sep 11 2014 20:22 Feb 05, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H707.IH H707 pamtmann on DSKBFK8HB2PROD with BILLS 2 •HR 707 IH SEC. 2. FINDINGS. 1 Congress finds the following: 2 (1) Economic inequality in the United States 3 has increased dramatically during the 4 decades pre- 4 ceding the date of enactment of this Act, with fewer 5 households taking home a larger share of the na- 6 tional income. 7 (2) While growth was once distributed relatively 8 evenly across all individuals in the United States, re- 9 search shows that economic gains are increasingly 10 enjoyed by the most affluent. By contrast, the ma- 11 jority of individuals in the United States have seen 12 income and wage growth significantly below what is 13 suggested by national measures of output and in- 14 come. 15 (3) The Bureau of Economic Analysis of the 16 Department of Commerce (referred to in this section 17 as ‘‘BEA’’) reports annual and quarterly estimates 18 of gross domestic product (referred to in this section 19 as ‘‘GDP’’) in the United States. These estimates 20 are important measures of the overall size and 21 health of the economy of the United States but do 22 not describe how economic gains are distributed 23 across the population of the United States. 24 (4) In a country of 325,000,000 individuals, 25 top-line GDP numbers do not capture the full range 26 VerDate Sep 11 2014 20:22 Feb 05, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H707.IH H707 pamtmann on DSKBFK8HB2PROD with BILLS 3 •HR 707 IH of household economic experiences and may be mis- 1 leading. The real GDP grew more than 3 percent 2 annually between 2003 and 2005, but the average 3 income for 1⁄2 of all individuals in the United States 4 fell during that period. 5 (5) Disaggregating economic growth by income 6 groups will provide a more complete picture of how 7 families in the United States are faring across all 8 rungs of the economic ladder and whether economic 9 growth is benefiting all individuals in the United 10 States. 11 (6) Recent academic estimates of distributional 12 growth show how much of the economic gains during 13 the 40 years preceding the date of enactment of this 14 Act have accrued to the top of the income distribu- 15 tion. Between 1980 and 2014, the average income of 16 the top 1 percent of the income distribution grew 5 17 times as much as the average income of the bottom 18 90 percent of the income distribution and more than 19 9 times as much as the average income of the bot- 20 tom 1⁄2. 21 (7) Official and timely estimates of distribu- 22 tional growth from BEA, reported alongside top-line 23 GDP numbers, would enable Congress to better 24 VerDate Sep 11 2014 20:22 Feb 05, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H707.IH H707 pamtmann on DSKBFK8HB2PROD with BILLS 4 •HR 707 IH evaluate economic policies that impact every indi- 1 vidual in the United States. 2 (8) Efforts to address slow wage growth, stag- 3 nant incomes, and growing economic inequality re- 4 quire broadening the focus beyond GDP and obtain- 5 ing metrics that better correspond to the experiences 6 of all families in the United States. 7 SEC. 3. ESTIMATES OF AGGREGATE ECONOMIC GROWTH 8 ACROSS INCOME GROUPS. 9 (a) DEFINITIONS.—In this section: 10 (1) BUREAU.—The term ‘‘Bureau’’ means the 11 Bureau of Economic Analysis of the Department of 12 Commerce. 13 (2) GROSS DOMESTIC PRODUCT ANALYSIS.— 14 The term ‘‘gross domestic product analysis’’— 15 (A) means a quarterly or annual analysis 16 conducted by the Bureau with respect to the 17 gross domestic product of the United States; 18 and 19 (B) includes a revision prepared by the 20 Bureau of an analysis described in subpara- 21 graph (A). 22 (3) RECENT ESTIMATE.—The term ‘‘recent es- 23 timate’’ means the most recent estimate described in 24 subsection (b) that is available on the date on which 25 VerDate Sep 11 2014 20:22 Feb 05, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H707.IH H707 pamtmann on DSKBFK8HB2PROD with BILLS 5 •HR 707 IH the gross domestic product analysis with which the 1 estimate is to be included is conducted. 2 (b) INCLUSION IN REPORTS.—Beginning in 2020, in 3 each gross domestic product analysis conducted by the Bu- 4 reau, the Bureau shall include a recent estimate of, with 5 respect to specific percentile groups of income, the total 6 amount that was added to the economy of the United 7 States during the period to which the recent estimate per- 8 tains, including in— 9 (1) each of the 10 deciles of income; and 10 (2) the highest 1 percent of income. 11 (c) AUTHORIZATION OF APPROPRIATIONS.—There 12 are authorized to be appropriated to the Secretary of Com- 13 merce such sums as are necessary to carry out this sec- 14 tion. 15 Æ VerDate Sep 11 2014 20:22 Feb 05, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H707.IH H707 pamtmann on DSKBFK8HB2PROD with BILLS