Economic policy discussions remain front and center. Policymakers need to strengthen the weak recovery so that faster employment gains will become large enough to substantially lower the unemployment rate. Policy also needs to lay the foundation for stronger long-term growth as the U.S. economy is struggling with low business investment and comparatively weak productivity growth. At the same time, federal policymakers need to consider steps to lower the long-term fiscal deficits without impeding economic growth and job creation in the short run and long term.
Striking a balance between job growth, long-term productivity gains, and deficit reduction is a tall order but not an impossible challenge. It is, however, not a problem that lends itself to ideological rhetoric but rather requires thoughtful discussion and respectful compromise among all stakeholders. The so-called “super committee,” a congressional bipartisan 12-member team charged with finding ways to lower the federal deficit by $1.5 trillion over the next decade by Thanksgiving, presents an opportunity to put job growth, innovation, and long-term economic prosperity at the top of the agenda in Washington.
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