Economic growth

Will Our Shrinking Workforce be a Bottleneck for Long-Term Economic Growth?

Will Our Shrinking Workforce be a Bottleneck for Long-Term Economic Growth?

A recent article in the Wall Street Journal describes the long-term decline in the size of the US workforce and its implications for long-term growth. [Sweeping] demographic and societal changes were driving down the participation rate long before the recession took hold. Young people are starting work later as more of them go to college. […]

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Are Small Businesses Really Job Generators?

Are Small Businesses Really Job Generators?

According to the latest economic research, yes. . . . or no. . . . actually, it all depends (remember, this is economic research we’re talking about.)  Joking aside, this question really matters to economic developers.  This week an editorial in Bloomberg News summarized some of the findings from economists: [Recent] economic research shows that […]

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New Study Looks at Links Between Tax Cuts & Economic Growth. . .

New Study Looks at Links Between Tax Cuts & Economic Growth. . .

. . . and finds there aren’t any.  The nonpartisan Congressional Research Service (remember now, the House is Republican and the Senate Democratic) recently released an extensive study examining the link between tax cuts and economic growth.  Here’s what they found: Throughout the late-1940s and 1950s, the top marginal tax rate was typically above 90%; […]

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The Impact of the “Digitalization” of Services

The Impact of the “Digitalization” of Services

Economists Ejaz Ghani and Arti Grover of the World Bank along with  Homi Kharas  of the Brookings Institution argue that the rise of cheap information technology has provided a real spur for the growth of globally traded services: Although conventional wisdom has been that labour-intensive manufacturing creates the most jobs in developing countries, recent data suggest […]

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What a Fiscal Drag

What a Fiscal Drag

That’s what JP Morgan thinks we got from the debt limit agreement.  They see four consequences of the deal:  1) No default. This had always been a low probability (<1%) very high cost outcome, which now seems off the table. 2) An eventual S&P downgrade is still more likely than not, though we think this […]

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