Ten Ways to Expand U.S. Growth

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“With the economy at full employment, the United States will need to gradually remove both fiscal and monetary support, while intensifying efforts to address multiple constraints on its medium-term growth prospects, ” a new IMF report says that “These constraints include weak productivity growth, an aging population, falling labor force participation, an increasingly polarized income distribution, and high levels of poverty. These growing headwinds are made worse by a share of income paid to workers that is nearly 4 percentage points lower than that in the early 2000s, a middle class that has shrunk to its smallest size over the past 30 years, and a potential growth rate that is virtually the lowest since the 1940s.” It also offers the following solutions:

“1. Getting the economic policy mix right.

2. Reforming the tax system.

3. Improving infrastructure.

4. Revitalizing trade.

5. Supporting low- and middle-income households.

6. Adopting a skills-based immigration reform.

7. Protecting the financial sector.

8. Simplifying federal regulations.

9. Strengthening healthcare coverage.

10. Minimizing the unintended consequences of technology and import penetration.”

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Posted by at 1:09 PM

Labels: Unemployment

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