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Investing for Productivity and Prosperity (1994) / Chapter Skim
Currently Skimming:

The Imperative of Growth
Pages 9-12

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From page 9...
... Conclusion Although it may not be desirable to set precise goals with milestones for economic indicators that are imperfectly understood and only partially subject to government control, it is also not enough to talk in general and vague terms about investments in technological development, tangible assets, and human capital. The absence of consensus about desirable levels of saving, investment, and productivity growth over the long term leads to a focus on shorter-term problems, with negative economic consequences that will become more severe the longer action is delayed.
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From page 10...
... Not only has the economy experienced a prolonged and unusually persistent recession followed by a period of slow growth that only recently has led to significant job creation, but also the private sector has continued to undergo significant restructuring. Manufacturing companies and industries are transforming their structures and becoming flatter, more efficient, and more -co ~ 1 For example, the Committee on Science, Engineering, and Public Policy of the National Academy of Sciences/National Academy of Engineering/Institute of Medicine, the Council on Competitiveness, the Competitiveness Policy Council Subcouncil on Technology Policy, and the Computer Systems Policy Project.
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From page 11...
... Second, because the restructuring of major sectors of the economy entails a short-run reduction of jobs, job creation through growth greater than what would occur in a normal recovery from recession is doubly important.2 Ultimately the productivity gains associated with restructuring will generate growth and jobs; in the medium term, probably the next 2Ralph Landau, "From Analysis to Action," in the forthcoming companion volume. The current recovery has been characterized by Stephen S
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From page 12...
... Although recognizing that national investments in public education and infrastructure are important contributors to growth, the board believes that an adequate level of private business Investment Is essential tor sustained economic growth. The changes in management practice and the redesign of organizational structures and processes that characterize the current restructuring of industry are producing encouraging productivity improvements with infusions of capital that are below historical levels.
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Key Terms

  • human capital
  • technical change
  • tangible assets
  • job creation
  • market expansion

  • board believes
  • below historical
  • kim model
  • restructuring processes
  • vague terms

  • significant loss
  • recent findings
  • adequate rate
  • gains associated
  • reduce government

  • global economy
  • accelerating pace
  • historical levels
  • investment performance
  • strong association

  • major sectors
  • sustained economic
  • board consulted
  • policy project
  • generate growth

  • public education
  • current restructuring
  • literature suggests
  • negative economic
  • significant restructuring


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