PUBLIC INVESTMENT AND PRIVATE SECTOR GROWTH: THE ECONOMIC BENEFITS OF REDUCING AMERICA'S "THIRD DEFICIT"

摘要: This report demonstrates the importance of public investment in physical infrastructure (roads, bridges, mass transit, electric power, sewers, etc.) to stimulation private sector productivity, profitability, and investment. Specifically, argues that slow-down spending for over past 25 years has been a major cause U.S. economy's poor performance since 1970. The shortfall between present stock capital needs is often described as "America's Third Deficit." presents an economic model showing if average level (relative GNP) 1950 1970 had maintained succeeding 20 years: rate return would have averaged 9.6% instead its actual value 7.9%; 3.7% rather than 3.1%; annual productivity growth 2.1% 1.4% -- 50% increase expansion productive capacity. shows today higher priority investment; pay-off GNP from extra dollar estimated exceed by factor two five. points out, however, future may not necessarily be same they were definition broadened include such investments communications networks or energy development. encourages reconsideration federal budget policy so facilitate stock.