Psychologists have identified a disorder they term dichotomous thinking (DT) where " .... someone is only able to see the extremes of a situation, and is unable to see the 'gray areas' or complexities of the situation." It's easy to think that many in Washington have chronic DT syndrome. Case in point is the talk decrying anything government does to help business as "crony capitalism."
Will The Next Silicon Valley Be Located in the United States?
As the world's largest R&D cluster, Silicon Valley brings untold economic benefits to the United States. The valley is also a prime example of how R&D in specific industries tends to stay tightly concentrated in a single region. Public support for R&D can help improve the odds that the next Silicon Valley is located in the United States.
Reshoring Optimism, But Not Much Else
While many news sources have reported that manufacturing jobs are returning to the United States, manufacturing employment and firm number data show that reshoring is a myth. To attract jobs back, the United States will need to concentrate on boosting R&D, improviWhile many news sources have reported that manufacturing jobs are returning to the United States, manufacturing employment and firm number data show that reshoring is a myth. To attract jobs back, the United States will need to concentrate on boosting R&D, improving productivity, and implementing corporate tax reforms.
The Roots of Right-Wing Anti-corporate Populism
There is a rising tide of right wing, anti-corporate populism – with designs on preventing all government support for business – that could greatly hinder American economic policy and hamper future U.S. competitiveness.
Time for a Grand Bargain on Corporate Tax Reform
The recent debate over corporate inversions (U.S. companies reincorporating themselves in nations with lower tax rates) threatens to derail progress on comprehensive tax reform even further. The administration and some in Congress seem set on treating the symptom rather than the disease. This is unfortunate because broader reform is both necessary and doable.
The United States is Slipping in Triadic Patents
Triadic patents, are patents filed jointly with the United States Patent and Trade Office, the European Patent Office, and the Japanese Patent Office, represent inventions with potentially global economic impact. A serious decline in U.S. triadic patents is the latest warning sign of diminished American innovation in advanced industries.
Worry About Slow Productivity Growth, Not Fast Productivity Growth
A recent report on US productivity growth confirms that we need more proactive public policies that encourage investment and growth. While many see new technology as responsible for high unemployment now or in the future, the truth is close to the opposite. Employment growth requires new investment and new investment goes hand in hand with productivity growth.