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 7 days ago

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


Viewed
7082 times

More from MIT Alumni Association

Climate Change Policy that Makes Economic Sense

Climate Change Policy that Makes Ec...

Added almost 2 years ago | 00:28:44 | 3801 views

MIT Alumni Leadership Conference: Session on K-12 STEM Education, Opening Remarks and Keynote

MIT Alumni Leadership Conference: S...

Added over 5 years ago | 00:53:32 | 28498 views

Alumni Leadership Conference 2012 - Maximizing Your MIT Network Capital

Alumni Leadership Conference 2012 -...

Added over 2 years ago | 01:14:00 | 1566 views

Faculty Forum Online: Big Data's Brave New World

Faculty Forum Online: Big Data's Br...

Added over 1 year ago | 00:30:38 | 3328 views

Tech Reunions 2013: Come Back and Celebrate!

Tech Reunions 2013: Come Back and C...

Added almost 2 years ago | 00:01:39 | 1934 views

Tech Night at Pops Balloon Drop

Tech Night at Pops Balloon Drop

Added over 2 years ago | 00:01:18 | 2978 views