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Posts Tagged ‘economic growth’

Why not growth?

August 4th, 2014

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Democrats’ intense focus on income inequality is understandable, but why not the same obsession over economic growth?

From 2001 to 2013, a span of thirteen years, average annual growth in the United States came out to a lumbering 1.8 percent. That is half the average annual growth rate we experienced from 1950 to 2000 —a period during which the middle class shined and the poverty rate declined.

Yes, the Great Recession contributed to substandard growth rates, but since 2001, the U.S. economy has exceeded 3 percent growth only twice. In the half century prior, we surpassed 3 percent growth per year 34 times. What was once “normal” growth is now a rarity.

Economists predict that America’s future growth rate will settle somewhere between mediocre and sickly. The Congressional Budget Office projects an average of 2.5 percent annual growth over the next ten years, while PricewaterhouseCoopers projects an average of 2.4 percent growth through 2020. Middling growth like that just won’t make an appreciable difference in the lives of average working people.

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Elites focus on inequality; real people just want growth

May 6th, 2014

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The economic debate is now sharply focused on the issue of income inequality. That may not be the debate Democrats want to have, however. It’s negative and divisive. Democrats would be better off talking about growth — a hopeful and unifying agenda.

Democrats believe income inequality is a populist cause. But it may be less of a populist issue than an issue promoted by the cultural elite: well-educated professionals who are economically comfortable but not rich. There’s new evidence that ordinary voters care more about growth.

Growth and inequality are not separate issues. Nobel Prize-winning economist Joseph E. Stiglitz wrote, “Politicians typically talk about rising inequality and the sluggish recovery as separate phenomena when they are in fact intertwined.  Inequality restrains and holds back our economic growth

The question is whether Democrats want to talk about punitive and confiscatory policies aimed at curbing the power of the wealthy and special interests or an agenda aimed at growing the economy for everyone.

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Don’t Waste This Free Trade Opportunity

December 2nd, 2013

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Within the next 20 years, the Asia Pacific region will need 12,820 new airplanes, valued at $1.9 trillion. Who will build them?

With half of the world’s air traffic growth revolving around the Asia-Pacific region, there are massive opportunities for American manufacturing and middle-class jobs in this one sector alone. But opportunity is not destiny. In the last decade, America’s share of exports to key Asia-Pacific markets fell by 43 percent. Our performance was last among our major trade competitors in the region.

We do not have to idle on the runway, however, as other foreign countries fly by. If we can regain our historical share of these export markets – which are set to approach $10 trillion by the end of this decade – it would add $600 billion to our economy and 3 million jobs by 2020 alone. The first step to seizing this growth opportunity rests with Congress and passage of a tool called Trade Promotion Authority.

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Immigration North of the Border

May 5th, 2011

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This piece was originally posted on The Huffington Post.

The heated debate over how we deal with immigration is only getting uglier and more caustic. Perhaps, as we try to settle our problem with entrants south of the border, we should look for answers north of the border.

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Misconceptions About Trade Agreements

April 13th, 2011

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This piece was originally published in The Wall Street Journal.

The U.S. and Colombia appear near a deal on a trade agreement. With this deal and others move closer to congressional debate, Ed Gerwin, Senior Fellow for Trade and Global Economic Policy at Third Way, and Jon Cowan, president of Third Way, point to five misconceptions about trade agreements.

Later this year, the Obama administration and Congress will seek bipartisan votes to pass free trade agreements with South Korea, Colombia and Panama. With 87% of global economic growth over the next 5 years taking place outside of the United States, trade supporters believe these agreements will create jobs and prosperity by helping American companies tap into fast-growing export markets.

Opponents disagree. They argue that “NAFTA-style” trade agreements hurt rather than help the U.S. economy — and polls show that much of the public agrees.

But is this conventional wisdom correct? Or do trade deals work? As Washington gears up for hard-edged debates about trade, it’s worth exploring some common misconceptions about free trade agreements.

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How the Democrats can stay relevant

November 4th, 2010

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This piece was originally published in Politico.

After sweeping to congressional majorities in 2006 and electing a president in 2008 with the largest Democratic percentage of the popular vote since Lyndon B. Johnson, Democrats are now in danger of becoming an irrelevant party.

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