Economic Growth Program: Publications, Events and More

NY Event: It's the Economic Recovery Plan, Stupid

Communications — Thu, 22 May 2008 04:30:00 -0400

A New America Event
05/22/2008 - 8:30am

As the debate on the economic slowdown moves from "if" to "when" to "how long," The New School's Schwartz Center for Economic Policy Analysis (SCEPA) and the New America Foundation will host a panel of top economists and business executives to discuss the best plan for an economic recovery.

Space is limited, please RSVP to specialevents@newschool.edu or (212) 229-5662 x 3570.

Doug Rediker in Harvard Political Review | 'Sovereign Wealth and Private Equity Funds are Here to Stay'

Communications — Tue, 22 Apr 2008 08:27:00 -0400

New America in the News:

Full article

. . . The new kids on the block, in terms of economic might, are sovereign wealth funds. Clouding their speedy rise are questions raised by Western media and governments about their management and purposes. Do they pose a threat to political stability? “That’s the three-trillion dollar question,” said Douglas Rediker, Co-Director of the Global Strategic Finance Initiative at the New America Foundation, in an interview with HPR. Sovereign wealth funds have never been this big before, or grown at such a pace. The International Monetary Fund has estimated that sovereign wealth funds could account for $12 trillion dollars by 2012.One problem that belies handy analysis of sovereign wealth funds, however, is their sheer diversity. Countries from Norway to Botswana operate sovereign wealth funds, and generalization about their aims or activities is difficult. But uncertainties about the motives of these funds are growing. . .

“The potential to use this finance as a political tool exists,” said Rediker. . . “There have been few if any instances where you can point to political influence having been part of an investment decision,” said Rediker. And it’s difficult to single out sovereign wealth funds for reform, for an important practical reason. Rediker noted that they disclose just as much information as private equity or hedge funds, and since giving up information can mean giving up market advantages, sovereign wealth funds are not keen on it. . . .

Doug Rediker in New York Times | Financier Aims to Buy Struggling Small Banks

Communications — Thu, 17 Apr 2008 14:54:00 -0400

New America in the News:

New York Times | Financier Aims to Buy Struggling Small Banks

. . . “For Abu Dhabi to come in and try to cobble together eight different thrifts into a multibillion-dollar deal is enormously complicated,” said Douglas Rediker, co-director of the Global Strategic Finance Initiative at the New America Foundation, a research organization in Washington. “But Wilbur Ross is an active investor who knows how to do this.” . . .

Illusions and Delusions About the U.S. Economic Picture

Communications — Sun, 30 Mar 2008 17:20:00 -0400

A New America Event
04/02/2008 - 12:00pm

Former John Edwards campaign senior economic advisor and telecom executive Leo Hindery understands better than most the difference between the needs of Wall Street and the needs of average Americans on Main Street. Looking at the subprime crisis as a symptom of a long history of economic mismanagement, Leo Hindery will argue that recent calls to change the regulatory bureaucracy in Washington are at best a band-aid. Rather, the American economy needs a long-term strategy to build a new edge in tradable goods and services to rebuild our middle class with high-wage jobs and reduce our massive trade imbalances.

Leo Hindery has announced his support of Barack Obama’s campaign -- but he will be speaking on his own behalf and not that of any campaign. Economic writers and commentators Bruce Stokes and Sherle Schwenninger will offer reactions.

An MP3 audio recording of the 87-minute event can be downloaded below, while the video of the full event is viewable at right.

Democratizing Capital

Ron Tang — Thu, 20 Mar 2008 05:53:00 -0400

Below is a longer version of the article published in The Nation. For the version appearing in The Nation, please click here.

Historical analogies are never exact. Yet many of the choices we have before us today are similar to ones that an earlier generation of progressives faced as the 1932 election approached. As we do today, the progressives of the 20th century confronted a society beset by a huge gap between classes and an economy laid flat by the bursting of the speculative excesses of the previous decade. To be sure, our economy is nowhere near Depression levels… more

Doug Rediker in National Journal | New Moves on Wealth Funds

Communications — Sat, 15 Mar 2008 13:46:00 -0400

New America in the News:

New Moves on Wealth Funds (National Journal, subscription only)

. . . Some analysts suggest that the likely ineffectual nature of the forthcoming IMF code of conduct and the reluctance of the Bush administration to take a tougher line reflect the impotence of the United States -- the world's largest debtor nation -- in regulating sovereign wealth funds.

"The leverage is not with us," said Doug Rediker, co-director of the New America Foundation's Global Strategic Finance Initiative. "What happens if the Abu Dhabi Investment Authority says it won't change its ways? What are we going to do? Tell them to keep their money?" . . .

Watching Sovereign Wealth

Ron Tang — Thu, 28 Feb 2008 00:00:00 -0500

When the adjectives most often used to describe you are "secretive," "opaque" and "mysterious," you've got an image problem. Such is the predicament of sovereign wealth funds, the government-controlled investment vehicles, often in authoritarian states, that have become the bane of Western politicians. Yesterday, the European Commission became the latest body to propose transparency guidelines for these funds.

But the good news for sovereign wealth funds is that increased disclosure and transparency may actually be a win-win for everyone. A little openness can go a long way.

Market participants and regulators would benefit by gaining some insight into potential contagion risks and… more

Do Sovereign Wealth Funds Make the U.S. Economy Stronger or Pose National Security Risks?

Economic Growth — Wed, 13 Feb 2008 18:00:00 -0500

By way of introduction, I spent most of the last seventeen years working as an investment banker and private equity investor based primarily in London, England. This experience, I believe, gives me a somewhat different perspective on Sovereign Wealth Funds and the role that they play in today’s international capital markets. Currently, I co-direct the Global Strategic Finance Initiative at the New America Foundation. The New America Foundation is a non-profit, post-partisan public policy institute in Washington D.C.

Over the past several months, few issues in international finance have generated as much discussion and comment as have Sovereign Wealth Funds. I commend you and your colleagues for the informed and balanced views… more

Michael Lind in Financial Times | Back to 'the economy, stupid'

Communications — Wed, 30 Jan 2008 17:18:00 -0500

New America in the News:
Back to 'the economy, stupid' How a slowdown will influence America's presidential contest (Financial Times)

..."The widespread notion that a downturn or a recession gives a clear advantage to the Democratic presidential challenger is not always supported by the facts," says Michael Lind, a political historian at the New America Foundation in Washington. "The past offers just as much evidence that we could get a Republican president with a Democratic Congress in November as a Democratic control of both." ...

New America in The New York Sun | 'Bloomberg Decries Stimulus Plans'

Communications — Thu, 24 Jan 2008 00:29:00 -0500

New America in the News:

Bloomberg in DC: 'The Jig Is Up': Mayor Decries the Plans for Stimulus (The New York Sun)

"When you need stimulus you cut checks. You've got to get the money out the door," a senior economic adviser to Senator Obama, Austan Goolsbee, said yesterday at a campaign panel organized by the New America Foundation. more

New America in The Hill | 'On stimulus, Sen. McCain, Bush divided'

Communications — Thu, 24 Jan 2008 00:23:00 -0500

New America in the News:

On stimulus, Sen. McCain, Bush divided (The Hill)

“Just raining cash down — which seems like what Congress wants to do—is not going to have much of an effect,” declared Kevin Hassett, a senior McCain adviser, who appeared on a panel at the New America Foundation alongside the economic advisers to the leading Democratic candidates. more

New America in US News & World Report | 'Candidates Push Economic Stimulus Plans'

Communications — Wed, 23 Jan 2008 23:59:00 -0500

New America in the News:

Presidential Candidates Push Economic Stimulus Plans (US News & World Report)

As Republicans and Democrats in Congress negotiate the exact details of an economic stimulus package, that debate was mirrored today among the chief economic advisers to several of the major presidential candidates at a forum at the New America Foundation in Washington, D.C. While none of these plans will be enacted, at least not in full, each adviser claimed his plan shows the superior economic thinking of his respective candidate. more

Sherle Schwenninger in CongressDaily | 'Balance of Payments'

Communications — Wed, 23 Jan 2008 16:37:00 -0500

New America in the News:

Balance of Payments (National Journal's CongressDaily, subscription only)

Recession is looming, but, for once, President Bush and congressional leaders are moving in the same direction and have adopted the mantra that a stimulus should be timely, targeted and temporary.

But, warns Sherle R. Schwenninger, head of the economic growth program at the Washington-based New America Foundation, "if you attempt to counter the downturn with just more supply-side and demand-side initiatives, all you will get is just another bubble. You need structural change." ...

As the Economy Screams

Communications — Wed, 23 Jan 2008 08:00:00 -0500

A New America Event
01/23/2008 - 8:00am

The Fed just dropped the fed funds rate by 75 basis points -- the largest such move since 1984. No matter what the issues were yesterday, it is clear that the economy -- domestic and global -- is what will be the biggest political issue today and tomorrow... at least for a while. So for this New America event, our Economic Growth Program and Next Social Contract Initiative brought together economic policy advisors to the various political campaigns.

Steven Clemons, Director of the American Strategy Program at New America, moderated the discussion and subsequent Q&A, which explored the challenges facing the U.S. economy and the wide range of responses being floated by the leading presidential hopefuls.

The following are highlights of the event, while an MP3 audio recording of the full 95-minute event can be downloaded below and video can be viewed at right.

Austan Goolsbee

"If we make the investments we need to in our educational system, in energy policy, in technology… we can maintain our place as the richest most productive country in the world."

"[The subprime crisis] is rooted in the problem of middle class economic anxiety and the lack of savings."

"To address these issues, in the short run we need middle class tax relief."

Leo Hindery

"We have a circumstance now where we have a massive credit crisis. It is so unfair to put this on the backs or on the names of women and men of lesser means and call it a subprime crisis. We have a pervasive nation wide, increasingly global credit crisis."

"It’s not seventy five percent of Americans who have found themselves living in stagnant conditions economically. The number is closer ninety percent. The wealth in this country has accreted to the top ten to the top two percent in unprecedented fashion."

"This economy needs a kick in the pants, and it needs it right now. It needs in a way that will excite the consumer crisis of confidence and of credit that exists in this country today."

Kevin Hassett

"Why is it that the stimulus plans can be caricatured as borrowing from the Chinese that we can drop out of helicopters? How is that going to fix the long run problems of our nation? Well I would argue that it isn’t the right thing to do. And that’s what Senator McCain firmly believes."

"[John McCain’s] view on stimulus is tied into his view that we have to start taking steps in the direction of fixing our long run problems. We should try to restore the competitiveness of U.S. corporations."

Gary Gensler

"Energy policy is critical not only for the economy, but also for energy security. Right now we are running close to 900 billion trade deficits a year. How can we expect to bring that down when if we don’t get energy security and have more dependence on natural resources here, and that means more green jobs and promoting alternatives to uses of oil."

"[Hillary Clinton's] program of about 110 billion dollars... [is] around the issues of housing, energy and jobs, to help promote and be specific to those three areas."

New America in Financial Times | 'Presidential rivals vie over economy'

Communications — Wed, 23 Jan 2008 00:08:00 -0500

New America in the News:

Presidential rivals vie over economy (Financial Times)

The Obama team claims its simpler package could be delivered and take effect more quickly – a claim most economists support. “When you need stimulus you cut checks,” Austan Goolsbee, an adviser to Mr Obama, told the New America Foundation. “You’ve got to get the money out the door.” more

Sherle Schwenninger in CQ Weekly | 'Congress' Role: Help Or Hinder'

Communications — Sun, 20 Jan 2008 16:13:00 -0500

New America in the News:

Congress' Role: Help Or Hinder (CQ Weekly)

"Giving the economy a temporary sugar high of trying to boost consumption will not sustain an economic growth path," said Sherle R. Schwenninger of the New America Foundation, a public policy think tank. "We see a longer-term program being required, which involves public infrastructure. It's more efficient and effective in stimulating both investment and demand and creating jobs." ...

Doug Rediker in AP | 'Foreign Investments Spur Concern on Hill'

Communications — Tue, 15 Jan 2008 11:38:00 -0500

New America in the News:

Foreign Investments Spur Concern on Hill (AP article appearing in Forbes and BusinessWeek)
The flow of funds from overseas could bolster the U.S. dollar, and sovereign wealth funds are the type of long-term investors that can stabilize the financial markets, said Doug Rediker, co-director of the international finance group at the New America Foundation. ...

Sherle Schwenninger in Las Vegas Sun | 'Fix the economy, but how?'

Communications — Mon, 14 Jan 2008 10:56:00 -0500

New America in the News:
Fix the economy, but how? (Las Vegas Sun)

As the partisan narratives emerge in Washington, Sherle Schwenninger at the New American Foundation, a Washington think tank, says they won’t work because the national downturn is more than a temporary blip. Schwenninger thinks the economy needs to be weaned from its dependence on consumer spending in favor of government infrastructure projects that could grow the economy. He is pushing to give cash to the states to modernize airports, fix roads or build electrical transmission lines, which Nevada needs to do to carry solar power across the region. ...

Sherle Schwenninger Quoted in NY Times | News Analysis on the Economy

Communications — Tue, 08 Jan 2008 10:18:00 -0500

New America in the News:
The Debate Over How and How Long - News Analysis on the Economy (New York Times)
“It would mean much more of the stimulus actually goes to creating jobs,” said Sherle R. Schwenninger, head of the economic growth program at the New America Foundation...

Sherle Schwenninger in Civil Engineering Magazine | 'The Infrastructure Crisis'

Communications — Tue, 01 Jan 2008 11:15:00 -0500

New America in the News:

The Infrastructure Crisis (Civil Engineering Magazine)

... The fact that the infrastructure has not been a national priority is evident from key economic data. From 1950 to 1970, for example, the United States devoted 3 percent of its gross domestic product (GDP) to infrastructure spending; since 1980, however, spending on infrastructure has been cut by a third, to just 2 percent of GDP, notes Sherle R. Schwenninger, the New York City–based director of the economic growth program of the New America Foundation, a Washington, D.C., think tank. The result has been a huge shortfall of needed investments, explains Schwenninger. ...

At present, infrastructure spending often gets crowded out by “other pressing expenditures that are more day to day” in the federal government’s annual budgetary fights, notes the New America Foundation’s Schwenninger, who wrote about the need for a capital budget in Ten Big Ideas for a New America, a report issued by that group in February 2007. But a capital budget would end these battles over distinguishing a capital expenditure from an operating expense and enable the nation to spread the costs of capital improvements over time rather than delay such investments to keep within annual budgetary limits, Schwenninger explains. more