A Universal EITC: Sharing the Gains from Economic Growth, Encouraging Work, and Supporting Families

A Universal EITC: Sharing the Gains from Economic Growth, Encouraging Work, and Supporting Families. Urban Institute. Leonard E. Burman. May 20, 2019

This report analyzes a straightforward mechanism to mitigate middle-class wage stagnation: a wage tax credit of 100 percent of earnings up to a maximum credit of $10,000, called a universal earned income tax credit. The child tax credit would increase from $2,000 to $2,500 and be made fully refundable. A broad-based, value-added tax of 11 percent would finance the new credit. The proposal is highly progressive and would nearly end poverty for families headed by a full-time worker. This report compares the proposal with current law, analyzes its economic effects, compares it to alternative reform options, and considers some complementary policy options. [Note: contains copyrighted material].

[PDF format, 48 pages].

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Beyond Neoliberalism: Insights From Emerging Markets

Beyond Neoliberalism: Insights From Emerging Markets. Brookings Institution. Geoffrey Gertz and Homi Kharas.  May 1, 2019

Across Western economies, the future of capitalism is suddenly up for debate. Driven in part by the twin shocks of Brexit and the election of Donald Trump, the prevailing neoliberal economic model—which prioritized a light touch regulatory regime, minimal barriers to trade and foreign investment, and overall a small role for the state in managing the economy—is under attack from both the left and the right. Will neoliberalism be displaced? And what will come next?

Around the world, meanwhile, emerging markets have been grappling with similar questions for decades. Neoliberalism spread unevenly across emerging markets, and likewise many of them have been moving beyond neoliberalism for decades. These varied experiences provide valuable insights into the strengths and weaknesses of neoliberalism and the future of economic and political policymaking in a post-neoliberal world. If the Washington Consensus mantra of “stabilize, privatize, and liberalize” has lost relevance today, what—if anything—has taken its place? How are different countries reevaluating the relative roles of states and markets in delivering economic development? Are there new “models” that are generalizable and applicable across countries and contexts? [Note: contains copyrighted material].

[PDF format, 109 pages].

Growing Cities That Work For All: A Capability-Based Approach To Regional Economic Competitiveness

Growing Cities That Work For All: A Capability-Based Approach To Regional Economic Competitiveness. Brookings Institution. Marcela Escobari et al. May 21, 2019.

Although today’s U.S. labor market is strong and unemployment is low, many working-age American remain marginalized. As communities across the country grapple with the challenges of an ever-evolving labor market, this report provides a framework for local leaders to grow good jobs through industrial development strategies that are based on their regions’ unique capabilities. [Note: contains copyrighted material].

[PDF format, 52 pages].

Business Bribery Risk Assessment

Business Bribery Risk Assessment. RAND Corporation. Karlyn D. Stanley et al. May 13, 2019

Report introduces a new index, the TRACE Matrix, for business bribery risk assessment. The index provides a quick and useful guide for businesses operating overseas based on a conceptual model of bribery risk and supported by data specific to firms. [Note: contains copyrighted material].

[PDF format, 75 pages].

The Damage Done By Recessions and How To Respond

The Damage Done By Recessions and How To Respond. Brookings Institution. Heather Boushey et al.  May 16, 2019

From December 2007 to June 2009, the United States experienced the longest and most-severe recession since World War II. Although the Great Recession was particularly damaging, recessions occur frequently and are devastating to workers, families, and the overall economy. Historically, the United States has responded to these downturns with a combination of monetary and fiscal policies, the majority of which are discretionary. In this paper, we discuss some of the concerns about relying too much on discretionary policy, highlighting opportunities to make greater use of automatic fiscal stabilization. Automatic stabilizers are designed to expand during an economic downturn and contract during an expansion—providing timely and temporary fiscal stimulus. This paper assesses the various policy responses available to the federal government and argues that when well designed, automatic stabilizers can be an effective part of the policy tool kit for responding to recessions. [Note: contains copyrighted material].

[PDF format, 38 pages].

The Higher Road: Forging a U.S. Strategy for the Global Infrastructure Challenge

The Higher Road: Forging a U.S. Strategy for the Global Infrastructure Challenge. Center for Strategic & International Studies. Matthew P. Goodman et al. April 23, 2019

Over the next 15 years, more hard infrastructure is projected to be built around the world than currently exists. This global build-out is already underway, and the changes it brings will only accelerate. Infrastructure projects, especially in the transport, energy, information and communications technology (ICT), and water sectors, have long been recognized as the backbone of modern economies. Going forward, emerging digital infrastructure, including fifth-generation (5G) networks, remote sensing, and other advanced technologies, will be especially critical. As our infrastructure is transformed, so will be the economies it fuels, the regions it connects, and the global commons it underpins. These trends are too powerful and potentially beneficial for the United States to stop, and too consequential to ignore. [Note: contains copyrighted material].

[PDF format, 61 pages].

Artificial Intelligence Primer: What is Needed to Maximize AI’s Economic, Social, and Trade Opportunities

Artificial Intelligence Primer: What is Needed to Maximize AI’s Economic, Social, and Trade Opportunities. Brookings Institution. Joshua P. Meltzer. May 13, 2019

Artificial intelligence (AI) has the potential to transform economic growth, commerce, and trade, affecting the types of jobs that are available and skills that are needed. The United States, China, Japan, Germany, the United Kingdom, France, and others have recognized the opportunity and are supporting AI research and development as well as preparing their workforce.

For AI to develop also requires an enabling environment that includes new regulation in areas such as AI ethics and data access and revisiting existing laws and regulation in areas such as privacy and intellectual property (IP) rights to ensure that they work for AI. In addition, AI development requires an international agenda to avoid unnecessary regulatory heterogeneity that creates barriers to data access and use and impedes the global diffusion of AI products. [Note: contains copyrighted material].

[PDF format, 26 pages].