Economy

A Macroeconomic Analysis of the President’s 2016 Budget

The President’s policies would make U.S. output larger over the next decade than it would be under current law—mostly by changing immigration laws. Such economic effects would feed back into the budget in ways that would reduce deficits. Each year, after the President releases his budget request, CBO analyzes the proposals in that request. Using its own economic projections and estimating procedures, CBO projects what the federal budget would look like over the next 10 years if the President’s proposals were adopted.

Strong patent system essential to strong innovation economy

Opponents of patents suggest that incentives to innovate exist without patents, and the absence of the property right would make the fruits of innovation more accessible.  Among the problems with this narrative is that it relies on a false assumption—that in the absence of patents, innovation will simply occur in the open, freely available to all.  This ignores the obvious alternative—that innovative ideas will be kept secret, preventing copying by others while capturing the benefits of inventions solely for inventors themselves, in perpetuity.

Economic Espionage: A Case for Why the U.S. Needs to Push Back

Espionage is nothing new. Indeed, there is a reason that it is referred to as the world’s second-oldest profession. It’s the scale and scope, and the methods and targets of espionage campaigns, that are changing. The FBI reports a significant spike in its number of economic espionage cases: a 53% increase just this past year, according to the Wall Street Journal.

Ben Bernanke on defense spending, the economy and what military training is worth to employers

Defense spending isn’t as big of a driver for the U.S. economy as it was a few years ago, when U.S. troops were still engaged in wars in Iraq and Afghanistan. But $600 billion a year is still a lot of money, and defense spending remains a major contributor to the economies of some states, such as Virginia and Hawaii. Plus, the Department of Defense funds a lot of research and development, much of which has led to technologies with widespread commercial applications, such as lasers and the Internet.

Here’s the map of the world, if size were determined by market cap

Bank of America Merrill Lynch this month published a report transforming many of their investment themes into maps. One of note is what the world would look like if sized by market capitalization. The U.S. is still looking like the U.S. — and Japan is pretty hefty — but where did China go? And how is Hong Kong bigger than the mainland?

U.S. businesses lobby Obama on China tech protectionism concerns

In the letter dated Aug. 11, 19 U.S. business lobbies including the American Chamber of Commerce in China and U.S. Chamber of Commerce, and sector-focused groups including the National Association of Manufacturers and Information Technology Industry Council, prodded Obama to raise the issues faced by the information and communications technology (ICT) sector. "China has increasingly pursued policies that have adversely affected the ability of U.S. ICT firms (and the companies that rely on them) to do business in China," the groups wrote.

The desperately needed pipeline that has nothing to do with oil

Wireless spectrum is the secret ingredient linking our smartphones to YouTube and our things to the Internet. It is the lifeblood of some of our economy’s fastest growing industries and will only grow in importance. With wireless data traffic continuing to increase dramatically, now is the time to start planning ways to accommodate for that traffic. We need to create a pipeline to channel spectrum from old sectors and technologies to new wireless broadband applications and the Internet of Things.

This Is What Your City Needs to Build an Innovation District

One year ago, the Brookings Institution released a report on the state of innovation districts in U.S. cities, and the report's authors found that these districts come in different sizes with different attributes on a city-by-city basis. After discovering how diverse (and sometimes misdirected) these innovation aspirations can be, the Brookings team now wants to develop a tool for measuring success in innovation districts everywhere.

Analyzing trends in Pell Grant recipients and expenditures

Why has the number of Pell recipients declined over the past two years after such a sharp increase between 2008 and 2010? Two factors are at play. First, enrollment at vocationally-oriented colleges (primarily community colleges and for-profit colleges) increases during recessions as displaced workers choose to receive additional training instead of trying to find a job in an awful economy. When the economy gets better, more of these individuals go back to work and forgo college.

Here's How Much Technology Is Messing Up Our Most Important Measurements of the Economy

Productivity has slowed over the past decade, spurring heated debate about the limits of innovation and U.S. growth potential.  New research from Goldman Sachs economists suggests another culprit —  mismeasurement of how much technology adds to economic output — could be the major driver behind the weakness.

Building a Nation, Building an Economy with STEM Education

In Singapore, teachers are called “nation builders,” a recognition of the role they play in preparing the leaders and workers who will sustain the country’s economic health and longevity. In an Information Age economy, educators—particularly those who teach the so-called STEM courses of science, technology, engineering, and math—are the main builders of our nation’s economic success.

Study: More students pick majors in STEM, business when economy is weak

Do college students tend to favor "practical" majors in tough economic times? Common sense suggests they would, and common sense is right, according to a study (PDF) published by the Institute for the Study of Labor, based in Bonn, Germany. The study found that college men and women in the U.S. "both move away from the liberal arts and education when unemployment goes up...

Driving Innovation From the White House

The White House will host its own Demo Day (#WHDemoDay) on August 4. "Unlike a private-sector Demo Day, where entrepreneurs pitch their ideas to funders, innovators from around the country will join President Obama to "demo" their individual success stories and show why we need to give every American the opportunity to pursue their bold, game-changing ideas," said Kalil, who called it chance to promote an inclusive innovation economy.

Employment in tangible-producing and intangible producing industries

The standard image of the U.S. economy is one of two mega-sectors: manufacturing and services. This is both is outdated and misleading. It is still basically based on Colin Clark's 1940's division of the economy into primary, secondary and tertiary. Over the years this has been simplified to goods versus services as the extractive industries (primary) have been lumped with the manufacturing (secondary) industries. This classification has been commonly used to declare that the U.S. has become a service economy.

June employment in tangible and intangible industries

Employment in tangible producing industries grew by 96,600 in May. Trade, Transportation & Utilities and Accommodation & Food Service were the biggest gainers. Intangible producing industries added 126,300 jobs with most of that gain in Professional & Business Services and Educational & Health Services had the overall largest gain.

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