Filed under: Capitalism, Economy, Freedom, Politics, Regulation, Taxes, The United States | Tags: Economic Freedom, Free Markets / Free People, The Business Roundtable
Randal Stephenson is chairman and CEO of AT&T Inc, and the new chairman of the Business Roundtable, an association of chief executive officers of leading U.S. companies. He wrote, in the Wall Street Journal today:
No matter the topic, the debate in Washington often comes down to whether we need more government funding for social programs or less spending to reduce the debt we leave our children. But this win-lose framing completely misses the one thing required to achieve both objectives: robust economic growth.
The simple fact is that if we want to control the deficit, preserve key entitlement programs, educate our children, grow jobs, and offer upward economic mobility for everyone, we have to get our economy growing faster.
To that end, the Business Roundtable, whose member companies generate annual revenues of more than $7 trillion while employing 16 million workers, is embracing an agenda for 2014 centered on one thing—encouraging public policies that will return the U.S. to its full growth potential.
We need four basic elements, he says: Fiscal stability. Stop stumbling from one fiscal crisis to another. Uncertainty. Nobody can plan. Will U.S. default on its debt? Interest rates? Budget deal is a step in the right direction. Other three elements are 1) Tax reform. 2) Expanded trade. 3) Immigration reform.
A study in American Economic Review shows that a one-percentage point decrease in the average corporate tax rate would result in an increase in real U.S. GDP of between 0.4% — 0.6% within one year.
Today, one our of every five U.S. jobs is supported by international trade. NAFTA has been a dramatic success in our hemisphere.
They support immigration reform with a larger pool of visas for high-skilled workers, and new visa system for lower-skilled workers. I’ll go for that when a goodly percentage of the 91 million workers who have dropped out of the labor participation force. find work. These are people in the working age group, not retired or disabled, but simply working age people who have given up. They do not count as “unemployed” and receive no unemployment compensation.
The “shortage” of people trained in science, technology, engineering and math is largely a myth, and there are far more graduates than openings. I have read that business is reluctant to hire people who have been out of work for some time, on the assumption that if they were qualified they would not be unemployed. This may be true.
Business has little idea how to sort through job applicants, and high-tech companies have devised all sorts of elaborate tests to try to sort out those who will fit in. Anyone who has worked in business has met people who make you wonder how they possibly got hired. Unfortunately they sometimes occupy important positions, but that is true of any large organization, the larger, the worse the problem.
Economic growth is the remedy for poverty, inequality and unemployment. Growth fosters innovation and creativity, and the fuel for economic growth is freedom. Countries that pursue economic freedom get prosperity as a bonus.
According to the 2014 Index of Economic Freedom, just released by the Heritage Foundation and the Wall Street Journal, after seven straight years of decline, the U.S. has dropped out of the top 10 most economically free countries.
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