Massachusetts Institute of Technology
Sign in | Create Account

Faculty Forum Online: U.S. Economy—The Real Solution is Growth

In the U.S., recent headlines have focused on such issues as the debt ceiling, the recent credit rating downgrade, and unemployment. But consider this: increasing the average growth rate in the U.S. by one percentage point over the next 20 years would not only result in much higher incomes and more jobs but would also obviate the need for drastic spending cuts today to reign in the government deficit.

With a 2% increase per year, average incomes, and to a first approximation government tax revenues, would be 49% higher in 20 years than they are today; with a 3% increase per year, they would be 81% higher. The underlying message? We should not take our eye off the really important ball: economic growth and the innovation process that underpins it.

Economics Professor Daron Acemoglu (read his bio following the link below), offered his thoughts and answered questions submitted by the worldwide MIT alumni community on October 26, 2011. Watch the video then join the discussion online.

Comments (0)

It looks like no one has posted a comment yet. You can be the first!

You need to log in, in order to post comments. If you don’t have an account yet, sign up now!

MIT Alumni Association

MIT Alumni Association

Category: Education | Updated 27 days ago

Created
October 27, 2011 16:30
Category
Tags
License
All Rights Reserved (What is this?)
Additional Files


Viewed
6327 times

More from MIT Alumni Association

A Perspective on Climate Change

A Perspective on Climate Change

Added over 5 years ago | 00:12:03 | 28765 views

Climbing Mt. Everest

Climbing Mt. Everest

Added over 5 years ago | 00:01:58 | 30617 views

Alex d'Arbeloff Memorial at Kresge

Alex d'Arbeloff Memorial at Kresge

Added over 5 years ago | 01:15:00 | 13337 views

Innovation Roundtable II

Innovation Roundtable II

Added over 4 years ago | 03:07:00 | 5780 views

Alumni Association Video Annual Report FY2013

Alumni Association Video Annual Rep...

Added 10 months ago | 00:11:54 | 2964 views

ALC Keynote: A Conversation with MIT President L. Rafael Reif

ALC Keynote: A Conversation with MI...

Added 10 months ago | 00:58:28 | 597 views