Time for an Innovation and Growth Budget, Not an Austerity Budget
Washington D.C. (January 7, 2014) – 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." This comes at the expense of growth-inducing investments and long-term economic health. A new approach to the budget is required to accomplish the dual goals of reducing the debt-to-GDP ratio and growing the economy.
An Innovation and Competitiveness-Centered Approach to Deficit Reduction, produced by the Information Technology and Innovation Foundation (ITIF), presents a comprehensive series of recommendations designed to focus federal policy on investments that promote growth. This includes reducing business taxes to spur investment, increasing federal funding for R&D, infrastructure and education, and making changes in entitlements to encourage Americans to wo