If the U.S. economy falls into recession, or avoids it but has an extended period of very slow growth, it will be tougher to fight off protectionist policies that will hurt the economy in the long run, analysts said Oct. 30.

This was one concern voiced at a conference on U.S. growth challenges sponsored by the New America Foundation, a Washington think tank. There was also general agreement on those challenges including the immediate ramifications of the housing slump, the trade and budget deficits, slow wage growth, the negative personal savings rate, and the need to invest in research, education and infrastructure to remain competitive in the global economy. Despite general agreement on the challenges facing the economy, there is ample argument about whether the outlook is pessimistic or optimistic....

The New America Foundation also released its own report, Realizing America's Economic Potential: A Growth Agenda for the New Abundant Economy, which makes the case that the U.S. economy can grow faster and calls for expanded public spending on infrastructure to strengthen the productive economy, efforts to promote new energy development and efficiency, a strategy to promote “on-shoring” investment, particularly in manufacturing, steps to improve the efficiency of health care and education, and a “pro-growth” wage and asset-based incomes policy.

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