Monday, May 2, 2011

The 4% solution

13 comments:

Patrick_L said...

http://economix.blogs.nytimes.com/2011/04/29/after-the-falls/

TJE said...

Difficult, but a worthy goal?

PBM said...

Only Osama news please. Also, who would want to work at the George W. Bush Institute?

Patrick_L said...

Exactly- a difficult but worthy goal. That was the only point I wanted to make- that financial sector-driven economic shocks are awful and always have been.

Patrick_L said...

And for PBM, the George W. Bush Institute idea also turned my head. I'd just note that it's ironic for someone founding the George W. Bush Institute to be lecturing everyone elso on how to achieve economic growth. The Bush years were quite poor on a number of economic growth measures.

TJE said...

I agree and demography will make job harder. I wonder if there could be any bipartisan consensus about pro-growth policies.

Patrick_L said...

tax reform, baby, tax reform.

TJE said...

We *agree* Mr. L!

PBM said...

infrastructure, baby, infrastructure

TJE said...

PBM, Japan tried that-- for the entire "lost decade."

Patrick_L said...

Japan's economic and infrastructure starting point and needs were far different than what the U.S. might currently face. For instance, the Federal Highway system had an enourmous positive impact on private business for decades. However, much of the system is reaching the end of its legs after being used for decades with minimal upkeep. I'm not arguing that we should spend dramatically more on infrastructure or ignore private financing alternatives- but the international comparative evidence is quite clear the U.S. has been underinvesting in infrastructure compared to economic competitors for decades. There's a reason why the Chamber of Commerce, bastion of low government spending and private solutions, has come out swinging in favor of infrastructure spending.

TJE said...

Some such investment may be appropriate, but I wouldn't put it near the top of my list of ways to advance the 4% solution.

Patrick_L said...

I completly agree.