Insufficient economic development

(Ref. 304)
Problem Components
Policy issue area: Economics
Policy issue: Development
Description: Substantial decline in the growth rate of the American economy.
Symptoms: Growth rate declined from 5% to a much lower figure; real wages have fallen about 8% since 1973; wage increases and benefits since 1975 wiped out by inflation; international competition weakened U.S. economy; growth dividend no longer available to finance rising expectations.
Causes: Slackened productivity; emergence of major industrial nations and competitors; end of cheap energy; cost of arms race; incompetent corporate management.
Cost of problem: -
Solution Components
Resources: Business; industry; management; workers; science (R&D); government funding.
Goal: 1. Pursue policies that stimulate economic growth, so that the United States remains the #1 economic power
2. Enhance "reindustrialization" or "industrial policy" strategies with concepts of social and economic revitalization
3. Encourage local economic revitalization of both urban and rural areas.
Program area: Economic development
Program-remedy: 1. Economic Cooperation Council (a new partnership for economic growth that enlists business, labor, and government in developing strategies)
2. Government programs to secure private and public investment in economic development and growth -- Strategic Investment Fund
3. A strengthened Job Training Partnership Act (JTPA)
4. A "mature industry" transition program
5. Expanded role for management and labor cooperation
6. Stimulate economic development in depressed urban and rural areas by supporting small businesses, enterprise zones, neighborhood rehabilitation programs, technology dissemination and transfer, etc.
Program-prevent: 1. Government policies to expand international competition without barriers
2. Cooperation with state and regional governments to stimulate and manage balanced growth
3. Developing an improved capability for strategic foresight, to better forecast threats and opportunities.
Cost of program: -
Beneficiaries: Participants of the national economy.

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