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].
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].
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
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
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].
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].
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].