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 1 month ago

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


Viewed
7586 times

More from MIT Alumni Association

Vladimir Bulovic on OLED Displays

Vladimir Bulovic on OLED Displays

Added 6 years ago | 00:03:08 | 292949 views

Fiscal Year 2011: Building Next Generation Networks

Fiscal Year 2011: Building Next Gen...

Added almost 4 years ago | 00:13:18 | 7140 views

MIT Holiday Greeting 2014

MIT Holiday Greeting 2014

Added 8 months ago | 00:00:42 | 3378 views

Alumni Leadership Conference 2011 - Building a Great Online Alumni Profile

Alumni Leadership Conference 2011 -...

Added almost 4 years ago | 00:54:08 | 4123 views

Enterprise Forum Video Plays on NASDAQ Tower

Enterprise Forum Video Plays on NAS...

Added over 5 years ago | 00:01:43 | 15598 views

2014 Tech Day - Solving the Energy Conundrum - Christopher Knittel

2014 Tech Day - Solving the Energy ...

Added 1 year ago | 00:25:04 | 2124 views