Report | Wages, Incomes, and Wealth

Breaking the stranglehold on growth: Why policies promoting demand offer a better way for the U.S. economy

Briefing Paper #192

Download PDF

A widely held prescription to promote faster economic growth in the U.S. can be summarized simply: government keep out. The point of view holds that, except on rare occasions, government should not intrude in markets and taxes should be low. Government spending should be restrained and, for the most part, government finances should be kept in balance, even at the cost of limiting social investment in public goods. Wages should not be supported by government regulations or social programs but eyed closely and disciplined if they rise too fast because they are a source of inflation. One legitimate role of government is to promote savings over consumption.

See related work on Income and wages | Wages, Incomes, and Wealth

See more work by Jeff Madrick