GROWTH

American Decline or Renewal? – Globalizing Jobs and Technology

House Science and Technology Committee – Hearing – May 22, 2008

http://science.house.gov/publications/hearings_markups_details.aspx?NewsID=2199

"No longer can we in good conscience escape the question: What do we do about the offshoring of American jobs?... Subcommittee Members expressed the importance of federal funding to cultivate American innovation and stimulate the economy here. Witnesses testified about the role and responsibilities of corporations, the relationship between the state and the market, and the ability of technological innovation to ensure our country’s economic prosperity in the absence of changes in the trading system. Members questioned witnesses from domestic firms regarding the cost of producing at home under the current trading system and requested their suggestions as to what the federal government could do to improve this system.”

Wing Thye Woo

Inflation amidst Recession: Policy Prescriptions for Sustaining Stable Growth

The Brookings Institution – Paper - May 14, 2008

http://www.brookings.edu/opinions/2008/0514_inflation_woo.aspx?emc=lm&m=215615&l=51&v=252043

“If the U.S. cannot achieve the international cooperation required for effective financial supervision to alleviate the present stagflation, it is highly improbable that the U.S. can achieve the international cooperation to prevent the worse stagflation created by climate change. The next president must be a strong consensus builder at home and abroad in order to effectively address these numerous challenges.”

Brian W. Cashell and Marc Labonte

Understanding Stagflation and the Risk of Its Recurrence

Congressional Research Service - Library of Congress - Web posted April 28, 2008 - 17 pages

http://assets.opencrs.com/rpts/RL34428_20080331.pdf

The slowing of economic growth and the rising rate of inflation have given rise to concerns that the U.S. economy is at risk of an episode of stagflation. Stagflation describes an economy that is characterized by high rates of both unemployment and inflation. The term came into popular use in the 1970s to describe the economy at that time. Even though recent unemployment and inflation rates are not nearly as high as they were in the 1970s, some economists fear that the recent expansion in monetary and fiscal policy at a time when unemployment is low but rising and energy prices are rising, could lead to a new bout of stagflation in the near future.

Marc Labonte

Evaluating the Potential for a Recession In 2008

Congressional Research Service - Library of Congress – Report - May 13, 2008 – 24 pages

http://assets.opencrs.com/rpts/RL34484_20080513.pdf

“The U.S. economy has faced some bad news lately… A look at the available data suggests that economic growth has slowed considerably, but it is too soon to tell if the economy has entered a recession. Recessions are defined as prolonged and sustained declines in economic activity, so by definition, a persistent downturn cannot be identified until it has persisted. Given the lags between policy changes and their effects on the economy, the economy has not yet felt the full impact of the stimulus package and the Federal Reserve’s actions. Therefore, it is still too early to tell.”