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1. How Can Trade Policy Help America Compete?

Author:
Robert Z. Lawrence
Publication Date:
10-2012
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
America deserves credit for not having succumbed to the global financial crisis by repeating the protectionist mistakes of the 1930s. Nonetheless, since 2007, although lip service has been paid to boosting US exports, its trade policy accomplishments have been modest. This is unfortunate because active trade policies can promote American living standards and facilitate America's return to full employment and sustained growth. These policies can also help to create a global trade order that advances American interests. This policy brief argues that the United States needs new initiatives that discipline foreign practices, increase access to foreign markets, revitalize the World Trade Organization (WTO), improve the administrative and regulatory environment for trade, and assist workers and communities adversely affected by change.
Topic:
Economics, Globalization, International Trade and Finance, Markets, Global Recession, Monetary Policy, and Financial Crisis
Political Geography:
United States and America

2. Combating Widespread Currency Manipulation

Author:
Joseph E. Gagnon Gagnon
Publication Date:
07-2012
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
Widespread currency manipulation, mainly in developing and newly industrialized economies, is the most important development of the past decade in international financial markets. In an attempt to hold down the values of their currencies, governments are distorting capital flows by around $1.5 trillion per year. The result is a net drain on aggregate demand in the United States and the euro area by an amount roughly equal to the large output gaps in the United States and the euro area. In other words, millions more Americans and Europeans would be employed if other countries did not manipulate their currencies and instead achieved sustainable growth through higher domestic demand.
Topic:
Economics, International Trade and Finance, Markets, and Monetary Policy
Political Geography:
United States, America, and Europe

3. Egypt's Perfect Economic Storm

Author:
David P. Goldmann
Publication Date:
06-2012
Content Type:
Journal Article
Journal:
The Journal of International Security Affairs
Institution:
Jewish Institute for National Security Affairs
Abstract:
A year after the overthrow of Hosni Mubarak, Egypt's economic crisis has become a uniquely severe event. Markets are now forecasting a devaluation of Egypt's currency by about two-thirds, as capital flight and an enormous structural trade deficit exhaust the country's foreign exchange reserves. With perhaps half of Egypt's population living on $2 per day, a major devaluation would price basic necessities out of the reach of tens of millions of people, despite the country's extensive (if inefficient) system of subsidies. The crisis seems uncontainable; Egypt's central bank appears to have exhausted its capacity to borrow from the domestic market, and is at odds with prospective foreign donors. As a result, Egypt now faces a financial collapse similar to those in over-indebted Latin American countries during the 1980s and 1990s, except with a crucial difference: the Latin Americans are all food exporters, while Egypt imports half its domestically consumed foodstuffs. The difference between Egypt and a Latin American banana republic is the bananas. This is an unprecedented state of affairs, a perfect economic storm. Egypt imports half its caloric consumption and is the world's largest importer of wheat. Economic collapse will “transform a peaceful revolution into a hunger revolution,” the second-in-command of Egypt's Muslim Brotherhood warned on February 3rd.1 After months of refusing to bargain with the International Monetary Fund (IMF), Egypt's government has begun negotiations for a $3.2 billion loan, or less than the amount of capital flight in December alone. But the involvement of the IMF has done little to reassure Egyptian investors. And on February 11, 2012, Egypt's Finance Minister said that his country would need $11 billion in external aid.2 Moreover, as of this writing, Egypt's insistence on prosecuting American democracy activists threatens to shut off American aid at a critical moment. It is possible that Egypt's leaders have abandoned hope of forestalling the crisis and are directing their energies instead toward finding a foreign entity to blame. Even under the most benign political conditions, though, it is unlikely that the West or the Gulf States would offer Egypt aid on the scale required to prevent a crisis. Unlike other countries threatened by famine, Egypt's requirements simply are too great for the rest of the world to shoulder for an extended period of time. Its governance, moreover, is so corrupt that its capacity to use foreign aid is in doubt. The most likely outcome is a humanitarian catastrophe too large for the rest of the world to ameliorate, and a political outcome too chaotic to permit large-scale humanitarian intervention, like Somalia. An implicit assumption of public policy is that all problems have solutions. Egypt appears to be an outstanding exception, a major nation in existential crisis for which no solution will be found.
Topic:
Markets
Political Geography:
America, Latin America, Egypt, and Somalia

4. The Evolving Structure of the American Economy and the Employment Challenge

Author:
Michael Spence and Sandile Hlatshwayo
Publication Date:
03-2011
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
This paper examines the evolving structure of the American economy, specifically, the trends in employment, value added, and value added per employee from 1990 to 2008. These trends are closely connected with complementary trends in the size and structure of the global economy, particularly in the major emerging economies. Employing historical time series data from the Bureau of Labor Statistics and the Bureau of Economic Analysis, U.S. industries are separated into internationally tradable and nontradable components, allowing for employment and value-added trends at both the industry and the aggregate level to be examined. Value added grew across the economy, but almost all of the incremental employment increase of 27.3 million jobs was on the nontradable side. On the nontradable side, government and health care are the largest employers and provided the largest increments (an additional 10.4 million jobs) over the past two decades. There are obvious questions about whether those trends can continue; without fast job creation in the nontradable sector, the United States would already have faced a major employment challenge.
Topic:
Economics, Markets, Labor Issues, and Financial Crisis
Political Geography:
United States and America

5. US Tax Discrimination Against Large Corporations Should Be Discarded

Author:
Gary Clyde Hufbauer and Martin Vieiro
Publication Date:
10-2011
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
The United States holds contradictory views about large corporations. When Americans speak of breakthroughs in research and engineering, they are justly proud of large firms that pioneered railroads and steam engines in the 19th century, automobiles, electric power, and oil exploration in the 20th century, and computers, software, and biotechnology in the 21st century. Yet when talk turns to paying taxes, public opinion holds that large corporations should pay a higher statutory tax rate than other business firms, and enjoy fewer deductions in computing their taxable income. Despite common sense and the teachings of economics, tax discrimination is alive and well.
Topic:
Economics, Globalization, International Trade and Finance, Markets, and Financial Crisis
Political Geography:
United States and America

6. Adjusting to China: A Challenge to the U.S. Manufacturing Sector

Author:
Martin Neil Baily
Publication Date:
01-2011
Content Type:
Policy Brief
Institution:
The Brookings Institution
Abstract:
During an "exit interview" with the Wall Street Journal, departing National Economic Council Director Lawrence Summers argued that history would judge the United States based on how well we adjust to China's emergence as a great power, economically and politically. In the face of China's progress, America's manufacturing sector faces major challenges in becoming and remaining competitive and our choice of national economic policies will affect how well we meet those challenges. It is essential that the U.S. trade deficit not balloon as the economy recovers. There is scope to expand our exports in services and agriculture, but improving the competitiveness of U.S. manufacturing is vital.
Topic:
International Trade and Finance, Markets, and Bilateral Relations
Political Geography:
United States, China, and America

7. Building an Impact Economy in America

Publication Date:
12-2011
Content Type:
Working Paper
Institution:
Aspen Institute
Abstract:
Today America finds a new market force emerging: companies that achieve an intimate connection between profit and purpose. And these businesses are supported by a developing system of investors and other financial actors that seek to place capital in firms that are achieving social impact. A new trail is being blazed for our country – open, far-reaching, transformative, offering an opportunity for renewal and growth. This is the Impact Economy.
Topic:
Economics, Industrial Policy, International Trade and Finance, Markets, and Monetary Policy
Political Geography:
United States and America

8. Fiscal Policy Report Card on America's Governors: 2010

Author:
Chris Edwards
Publication Date:
09-2010
Content Type:
Working Paper
Institution:
The Cato Institute
Abstract:
State governments have had to make tough budget choices in recent years. Tax revenues have stagnated as a result of the poor economy, and that has prompted governors to take a variety of fiscal actions to close large budget gaps. Some governors have cut spending to balance their budgets, while others have pursued large tax increases.
Topic:
Economics, Government, Markets, and Monetary Policy
Political Geography:
America

9. Defining Success: The Case against Rail Transit

Author:
Randal O'Toole
Publication Date:
03-2010
Content Type:
Working Paper
Institution:
The Cato Institute
Abstract:
Over the past four decades, American cities have spent close to $100 billion constructing rail transit systems, and many billions more operating those systems. The agencies that spend taxpayer dollars building these lines almost invariably call them successful even when they go an average of 40 percent over budget and, in many cases, carry an insignificant number of riders. The people who rarely or never ride these lines but still have to pay for them should ask, “How do you define success?"
Topic:
Government, Markets, and Infrastructure
Political Geography:
America

10. Hobbling Exports and Destroying Jobs

Author:
Gary Clyde Hufbauer and Theodore H. Moran
Publication Date:
06-2010
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
The US House of Representatives has just passed the American Jobs and Closing Tax Loopholes Act (HR 4213). This bill will hurt American workers, reduce American exports, and make American companies less competitive in the international marketplace. Since the US Senate has already passed companion legislation, the American Workers, State, and Business Relief Act (S 3336), these ill-considered bills could soon be reconciled in conference and become the law of the land. If so, American firms and workers will pay the price.
Topic:
Economics, International Trade and Finance, Markets, and Labor Issues
Political Geography:
United States and America