New America Foundation Launches Economic Growth Program, Releases Major Report on Realizing America’s Economic Potential
The New America Foundation launched its Economic Growth Program and introduced Bruce Stokes, International Economics Columnist with National Journal, as the director of the Program at a major policy conference today in Washington. New America also released the Program’s first report, “Realizing America’s Economic Potential: A Growth Agenda for the New Abundant Economy,” which shows how our nation’s policy approach must change to meet the challenges associated with a world economy of higher productivity growth and abundant labor and capital.
“Our nation’s debate about economic growth tends to be highly partisan and parochial,” said Ted Halstead, President and CEO of New America Foundation. “We have launched our Economic Growth Program to break out of this tired and predictable debate and inject some much needed, new thinking about how to put America back onto a high-growth trajectory, one that lives up to the true economic potential of our time.”
“We are extremely grateful to Bernard Schwartz for his vision and long-term investment in focusing the nation’s attention on this vital topic,” said Halstead. “Given the rapidly changing and dynamic economic landscape, Mr. Schwartz’s support will allow New America to focus considerable attention on meeting the challenges of this new economic era.”
Higher productivity growth made possible by the latest technology revolution and an abundant supply of labor and capital associated with the integration of China and India into the world economy have raised the economy’s potential growth rate. But because of inappropriate policy, the U.S. and world economies are underperforming. New America Foundation’s Economic Growth Program will strategically assess and recommend how the U.S. can achieve its true growth potential.
The Program will be directed by Bruce Stokes, who comes to New America with an extensive background in economic policy. He formerly directed the Council on Foreign Relations trade program and was a member of President Clinton’s Commission on United States-Pacific Trade and Investment Policy. Mr. Stokes will continue in his role as International Economics Columnist for the National Journal, a Washington-based, public policy magazine.
“While the economy has done quite well in recent years,” said Stokes, “it is not nearly good enough considering the challenges that lie ahead. America cannot realize its economic potential without a coherent strategy to boost long-term growth.”
To that end, the report released today argues that the biggest near-term constraints on economic growth are not America’s budget and current account deficits, as conventional wisdom holds. Instead the report points to the lingering hangover from the tech and housing bubbles -- which threaten both investment and consumption -- and inadequate world demand caused by suppressed consumption abroad and depressed wage growth at home. The report therefore recommends a public-investment-led strategy in the United States to stimulate both investment and demand, combined with a global Keynesian program abroad to increase consumption in newly industrialized countries like China, as the best strategy to put the economy on a more sustainable path toward realizing its full growth potential.
In addition, the report recommends a five-part program for ensuring future prosperity: 1) increased investment in both America’s knowledge capital and its physical infrastructure; 2) a program to accelerate new energy development and greater energy efficiency; 3) a strategy for on-shoring more jobs and investment in America’s tradable goods sector; 4) policies to promote an efficiency revolution in health care and education; and 5) a wage and asset-based incomes policy to ensure that more Americans share the fruits of the new abundant economy.
New America Foundation also released a second report, “Rebuilding America’s Productive Economy: A Heartland Development Strategy” at today’s conference. The report stands the conventional wisdom that America’s heartland is in a state of inexorable decline on its head. Instead, the report shows that the Heartland -- that vast interior of the country west of the Mississippi and east of the Rocky Mountain -- possesses many underutilized assets, from low housing costs to quality schools to readily available land, that with intelligent public policy can be used as levers for new employment and wealth creation.
About New America Foundation
New America Foundation is a nonprofit, post-partisan, public policy institute whose purpose is to bring exceptionally promising new voices and new ideas to the fore of our nation’s public discourse. Relying on a venture capital approach, the Foundation invests in outstanding individuals and policy solutions that transcend the conventional political spectrum. Headquartered in our nation’s capital, New America also has offices in California and New York.
For a full list of New America’s Board of Directors, click here.
