Beyond Recovery: America's Public Investment Deficit

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Abstract:

The need for a bold recovery plan to address the accelerating downturn understandably consumes Washington’s attention. Nonetheless, the challenge of getting the economy growing again, though vital, is not sufficient. Our response to the crisis must plant the seeds for the new economy of the future.

We must not, once we pull the economy out of recession, return to business as usual – a high-consumption, low-wage economy based on asset bubbles and foreign borrowing. That strategy was never sustainable and is no longer available.