U.S. economic politics is often framed as a clash between “Main Street” and multinationals, with the former hard working mom and pop owners and the latter controlled by profit-hungry tycoons. But this framing misses the point, what determines America’s position in the global economy is not whether Fred’s clothing shop sells more pants. Politics and policy should be focused on Multinational Street (and “high growth entrepreneurship street”) which predominantly drive the nation’s jobs, competitiveness, innovation, and productivity growth. Requiring U.S. traded sector firms to pay the same taxes as non-traded sector firms is a sure recipe for even lower levels of U.S. economic competitiveness, even less spending at Main Street companies, and even fewer jobs.
Assailing Corporations is a Poor Competitiveness Strategy
America is in a global race for innovation advantage and policy makers around the world are enacting forward-thinking policies to make their nations more attractive for global investment. Unfortunately, instead of focusing on the reforms the U.S. needs to keep pace, some policymakers focus on blaming corporations for choosing to move jobs offshore or legally deferring foreign profits to reduce their tax burden. Blame is not a strategy. Shame is not a policy. Instead of berating U.S. companies for being unpatriotic, Congress would be better advised to put in place the comprehensive changes needed to make the U.S. economy more competitive.
The Real Story on Guestworkers in the High-skill U.S. Labor Market
Recently, the Economic Policy Institute issued a report claiming that there is no shortage of U.S. STEM workers and that increases in high-skill immigration are not needed and detrimental to the U.S. economy. In this report, ITIF presents a detailed rebuttal of the EPI analysis to provide a more accurate picture of the high skill labor market. We find that the EPI report's conclusions are simply not supported by the evidence. In fact, the U.S. does not produce enough STEM workers domestically, STEM wages and jobs have grown significantly over the last decade, and high-skill guestworkers are a complement, not a substitute, to American high-skill labor.
Just the Facts: The Benefits of Information and Communications Technology
A prominent economist once stated, "computer chips, potato chips, what's the difference." The short answer is "a lot." Fifty-five years after the invention of the integrated circuit and 28 years after the first dot-com website was registered, information and communications technology (IT) remains a central driver of innovation and prosperity.
This fact sheet lists 53 documented economic benefits of IT, from jobs and output to competitiveness and innovation.