Cut or Invest: What's the Best Way to Grow Our Economy?
In his 2011 State of the Union Address, President Obama called for increasing federal investments in innovation as a way to accelerate economic growth and thus reduce the federal deficit. Federal government investments, he said, were critical to the creation of computer microchips, GPS, and other technologies. But conservatives say this is the wrong approach. We must cut government spending, not increase it, in order to reduce the deficit and free up private capital to innovate. The government shouldn't pick tech winners and losers—they’ll only make things worse. Who's right?