Report | Budget Taxes and Public Investment

Investment-Led Stimulus

Briefing Paper #26

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The U.S. economy faces major problems in both the short and long term.
Currently, it totters between an anemic recovery and a double-dip recession. Over
the longer term we face a continuation of the unsatisfactory pre-recession trends of
slow income growth, flagging productivity, and eroding international
competitiveness.

This paper outlines the case for a modest, politically reasonable, fiscal
strategy which will stimulate employment and production growth in the short run
and expand public and private investment in the longer term.

See more work by Jeff Faux