Step on It!

December 5th, 2012 at 10:17 pm

Some thoughts about potential growth by yours truly over at the NYT.  I suggest we stop self-inflicting economic wounds and obsessing over tweaks in the tax code, and instead think about ways to boost growth and jobs.  Who could disagree with that?!

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6 comments in reply to "Step on It!"

  1. Nhon Tran says:

    Thank you. I agree that the priorities for America going forward are to lift the potential growth rate and to share the gain from growth less unevenly among the population: more immigration of both skilled and unskilled people, lifting investment in education, skills, IT, using capital more efficiently (phasing out the mortgage deduction which has outlived its purpose and which favours upper-income taxpayers in upper-income (blue) states, phasing out the deduction for state income and property taxes, which distorts the flows of capital and which favours upper-income taxpayers in upper-income (blue) states). Regards.

  2. Tyler Healey says:

    The unemployment rate is only four percent for Americans with at least a bachelor’s degree.

    • Peter K. says:

      Tyler, what’s your point? What about the fact that according to the CBO, if I recall correctly, the output gap stands at 1 trillion a year?

      My view is that monetary policy could do more. We don’t or shouldn’t have a two-tier YOYO society where only people with bachelors degrees count.

  3. Fernando Centeno says:

    Great analysis, but I still believe you are 90% there. We still need finer, localized indices, knowing which policy interventions worked, and why, and which only promote “growth” and “economic rates”, but do little for communities in need.

    Rather than commentary and promotion rhetoric from “urban” planners, Chambers of Commerce, politicos, and pundits, you need actual E.D. practitioners who can address the remaining 10% of your analysis.


  4. Bernard Campbell says:

    Our economic “engine” is starving for lack of fuel. Our burgeoning foreign trade deficits leak billions of our money to foreign nations where the investments in manufacturing are being made, especially for so many of our “basic needs” – food, clothing, energy. Until we can find a way to restore our once-vibrant manufacturing economy, we’ll be in the same boat as the early American immigrants – totally reliant upon foreign sources for our needs.

    We constantly hear the cries for “energy independence”, but feign to cry out for clothing independence.

  5. Nick Batzdorf says:

    Great article. It’s incredibly frustrating that we’re doing this to ourselves because even – or especially – so many policy makers are ignorant about the most basic economic concepts.

    Dean Baker makes me feel a little better about some of the lower growth potential, however: