Demand-Led Growth, Government Intervention, and Public Investment: Broadening the Policy Choices for America
The United States is a rich country, but since the Inflationary crises of the 1970s, it has acted as if it were not. One of the inappropriate lessons the country learned then was to distrust government programs. But for the economy to work well and for the country to ensure that its broad promise of opportunity is kept for all, government must retain a vital and vigorous presence. Prevailing economic theory and in particular theories of economic growth have contributed significantly to the diminution of government's role. This article proposes not to discard the traditional theory but to offer a richer, more comprehensive theory of growth, which supports valuable and neglected public policies, including higher levels of public investment.