The U.S. needs an export strategy led by research and development, and it needs it now. A serious federal commitment to R&D would help arrest the long-term decline in manufacturing, and return America to its preeminent and competitive positions in high tech. At the same time, increasing sales of these once-key exports abroad would improve our also-declining balance of trade.<\/p>\n
It\u2019s the best shot the U.S. has to energize its weak economic recovery. R&D investment in products sold in foreign markets would yield a greater contribution to economic growth than any other feasible approach today. It would raise GDP, lower unemployment, and rehabilitate production operations in ways that would reverberate worldwide.<\/p>\n
…<\/p>\n
For our R&D\/export model, we posited a modest infusion of $160 billion per year \u2014 about 1 percent of GDP \u2014 until 2016. We saw unemployment fall to less than 5 percent by 2016, compared with CBO forecasts that unemployment will remain over 7 percent. Real GDP <\/strong>growth \u2014 instead of hovering around 3.5 percent, by CBO estimates, on the current path \u2014 gradually rose to near 5.5 percent by the end of the period.<\/p><\/blockquote>\n Read it here<\/a>.<\/p>\n The research underlying these proposals and projections can be found in the Levy Institute’s most recent US macroeconomic analysis: “Rescuing the Recovery: Prospects and Policies for the United States<\/a>”<\/p>\n
![\"sa_10_13\"](\"http:\/\/blogs.bard.edu\/multiplier-effect\/files\/2013\/11\/sa_10_13.jpg\")
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