Jobs for America: Investments and Policies for Economic Growth and Competitiveness
Ross DeVol, Milken Institute (1-26-2010)
A new economic report conducted by the Milken Institute and sponsored by the National Association of Manufacturers (NAM) shows that changes to economic and tax policies and investment in key infrastructure project categories could create more than 11 million jobs in the United States this decade.
Jobs for America: Investments and Policies for Economic Growth and Competitiveness, a study conducted by the Milken Institute, analyzes how reducing corporate tax rates, establishing a permanent research and development credit, modernizing the U.S. system of export controls, and making major investments in energy and transportation infrastructure would create jobs and make the United States more competitive.
The policy changes proposed would significantly increase jobs and grow the economy. Key findings include:
• Reducing the U.S. corporate income tax to match the average of other industrial countries (OECD nations) would trigger new growth. By 2019, it could boost real GDP by $375.5 billion and create an additional 350,000 manufacturing jobs - increasing total employment by 2.1 million.
• A permanent R&D credit, increased by 25 percent, could boost real GDP by $206 billion (1.2 percent) and generate 316,000 manufacturing jobs.
• Modernizing U.S. export controls could increase exports in high-value areas, enhancing real GDP by $64 billion by 2019 and creating 160,000 manufacturing jobs.
The report also demonstrates the major economic impact that would result from investments in 10 areas of infrastructure - highways and transit, broadband infrastructure, onshore exploration/offshore drilling, drinking water and wastewater infrastructure, smart grid, sustainability projects (natural gas and clean coal technology), nuclear energy, waterways, and aviation (NextGen).
The proposed investments amount to $425.6 billion, creating 3.4 million construction- and R&D-related jobs. Accounting for ripple effects across other sectors, the total impact would add up to more than 10 million jobs. The impact on long-term competitiveness is just as critical.