How to Restore Equitable and Sustainable Economic Growth in the United States
American Economic Review · 2016 · Volume 106 · Issue 5
Abstract
Today's weakness in the US economy results from lack of aggregate demand, due to high and growing inequality, underinvestment in public infrastructure and technology that is complementary to private capital, continuing mild austerity, difficulties encountered in making the structural transformation from manufacturing to a service-based economy, and a financial sector failing to provide adequate funds to SMEs. An agenda to restore growth includes a carbon price, inducing climate investments; increased public investments in infrastructure and technology; fighting inequality through redistribution and rewriting the rules structuring the economy; and reforming the financial sector and the global reserve system.
Keywords
Macroeconomics: Production, Business Fluctuations, Cycles, Financial Markets and the Macroeconomy, Policy Objectives, Policy Designs and Consistency, Policy Coordination, Fiscal Policy, National Government Expenditures and Related Policies: General
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