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 21 hours ago

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


Viewed
6366 times

More from MIT Alumni Association

Backpack to Briefcase 2010 “Buying a Home”

Backpack to Briefcase 2010 “Buying ...

Added 4 years ago | 00:32:58 | 12615 views

Mystery Hunt 2010—Don't you wish you were here?

Mystery Hunt 2010—Don't you wish yo...

Added over 4 years ago | 00:03:25 | 11302 views

MIT Alumni Association Reunion

MIT Alumni Association Reunion

Added 1 year ago | 02:07:48 | 764 views

Views of MIT: Past & Present

Views of MIT: Past & Present

Added 6 years ago | 00:12:15 | 19872 views

Tech Reunions 2013: Come Back and Celebrate!

Tech Reunions 2013: Come Back and C...

Added over 1 year ago | 00:01:39 | 1640 views

Alumni Profiles: Lola Ball '91, SM '92

Alumni Profiles: Lola Ball '91, SM '92

Added almost 5 years ago | 00:01:22 | 17284 views