Interesting article on economic growth

[AJH032]

I know the DLC isn't very popular around here, but I came across this article from the Progressive Policy Institute that does a nice job of explaining why progressive economic policies are a better catalyst for economic growth than conservative economics. Here's the link:

http://www.ppionline.org/ppi_ci.cfm?knlgAreaID=107&subsecid=123&contentid=252104

[idlisambar]

1. These suggestions are not bad, but they're insufficient on their own

Any plan to address U.S. economic weakness must address directly the primary source of that weakness -- lack of competitiveness in the manufacture of tradable goods.

Although some of the suggestions such as boosting public R&D spending, and boosting tax credits for private sector R&D will have some effect they are not strong enough. In particular, in addition to encouraging private sector R&D, measures must to taken to ensure that the fruits of this R&D are used to the advantage of domestic industry rather than just the corporations themselves. For example, it might serve the shareholders (short-term) interests for a corporation to take its technology and build a facility with it offshore. In addition to not benefitting American workers, strategic technologies are generally not well preserved on foreign soil.

Second, while "transitional health benefits" for the unemployed are a fine idea, this does nothing to alleviate the growing health care burden of our domestic manufacturers.

There are other points of contention, such as the faith in currency markets to iron out trade imbalances, but the overall point is that the ideas presented are mostly incremental improvements when drastic changes are needed at this point.

[Robert Oak]

2. it's a start

But certainly "supply side" is "piss on" economics. The evidence is in.

I think the major point of this article is international global economy
policy is complex as hell, it's not black and white.

Bush & corporation are full of shit, that's just the feudal lord religion.