Robert Gordon’s new paper, revising and restating his arguments from a 2012 paper, is ostensibly about slowing growth in the United States, but in fact it takes a more complicated look at the income growth for the bottom 99 percent. Unfortunately, the added complexity is built on questionable assumptions and mostly just adds layers of ambiguity and confusion. Worst, it completely misunderstands the function and role of innovation in the economy.
ITIF hosts Dr. William Janeway
Dr. William Janeway discussed his new book, Doing Capitalism in an Innovation Economy, at ITIF this week. Dr. Janeway, an economist and veteran venture capitalist, argued that argued that public support for innovation is critical, calling it our “national mission” for the 21st century.
An Innovation and Competitiveness-Centered Approach to Deficit Reduction
The "Washington Consensus" on the federal budget process is grounded in faulty economic theory which leads to a fixation on reducing the debt and a focus on putting "everything on the table," coming at the expense of growth-inducing investments and long-term economic growth. A new approach to the budget is required to accomplish the dual goals of reducing the budget deficit and growing the economy. This report presents a series of recommendations designed to focus federal spending and tax policy on investments that promote growth while also reducing the national debt.