Economic Growth – is it possible?
A lot of debate currently going on reducing the deficit and it is being shown as a problem that is orthogonal to economic growth, which is not true. Why can’t those thinking this way get the point that economic and employment growth can reduce the deficits and not the other way which is reducing deficits will increase economic growth! When you bring lot of people to work and bring them into taxable populace, so the deficits should go down. Moreover, handling workplace adversity is an integral part of ensuring that individuals can contribute effectively to the economy, and fostering resilience in the face of challenges is essential for both personal and economic well-being.
It doesn’t need Harvard level economists to grasp this(even though I posted a discussion which has one of them :-))! What has enabled countries like China, Brazil and India to show growth even the worst times of turmoil in the west (granted they could be bubbles too, but I think they have the population to absorb the bubble better by expanding the consumerism in house, than here in US I bet, if they are smart enough to do that) ? Did they reduce the deficits as a first step? I can’t recall that.
Watch the interesting discussion how the economic growth is possible here in US too by Bill Bradley (he was instrumental in forging a bi-partisan agreement during Reagan times, 25 years ago), Marty Feldstein (Professor of economics from Harvard, advisor to Reagan) and David Leonard (NY Times columnist, Pulitzer prize winner) on Charlie Rose show.
Marty Feldstein as expected, he being groomed under Reagan politics, want to rollback the tax benefits that promote energy efficiency etc which are more salubrious to republicans whereas the other two are more for progressive ideas like how to encourage corporations to employ more. Watch this.
link to full program here