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 29 days ago

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


Viewed
6448 times

More from MIT Alumni Association

Prospect Management Tutorial

Prospect Management Tutorial

Added almost 5 years ago | 00:04:17 | 16351 views

Web 2.0: Powerful Tools to Connect Your Community

Web 2.0: Powerful Tools to Connect ...

Added over 6 years ago | 01:23:00 | 28718 views

Conversation with the President: Strengthening MIT's Global Impact

Conversation with the President: St...

Added over 1 year ago | 00:30:41 | 1441 views

ePostard Tutorial

ePostard Tutorial

Added almost 5 years ago | 00:01:38 | 12081 views

Educational Event for all students on “Student Leadership Case Studies” led by Class of 2014 Community Catalysts

Educational Event for all students ...

Added 6 months ago | 00:37:33 | 315 views

Toast to Tech Fireworks

Toast to Tech Fireworks

Added 3 years ago | 00:00:52 | 6384 views