Why we can grow faster.

Pessimism about future growth rates in the U.S. is based on unassailable calculations but dubious assumptions, and there is a real danger that limiting expectations of growth may become a self-fulfilling prediction. Instead of predicting growth rates, the Federal Reserve Board, the White House, the...

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Published in:American Prospect no. 34; p. 63
Main Authors: Bluestone, Barry, Harrison, Bennett
Format: Article
Published: American Prospect September/October 1997
Subjects:
Online Access:View this record in EBSCOhost
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          Bluestone, Barry
          Harrison, Bennett
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        Labor productivity
        Economic development
        United States economic policy
        United States
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          United States
          Labor productivity
          Economic development
          United States economic policy
      ab: Pessimism about future growth rates in the U.S. is based on unassailable calculations but dubious assumptions, and there is a real danger that limiting expectations of growth may become a self-fulfilling prediction. Instead of predicting growth rates, the Federal Reserve Board, the White House, the Congressional Budget Office, and the economists on whom these bodies depend for guidance may be unintentionally setting growth rates. There is a substantial amount of proof demonstrating that the mainstream forecasts of both labor supply and output per worker are overly pessimistic, considering emerging underlying forces in the economy. The official projections for economic growth are based on a continuation of their current poor record, but there is good reason to believe that there will be a productivity renaissance in the near future.
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