A new economic report conducted by the Milken Institute and sponsored by the National Association of Manufacturers (NAM) shows that changes to economic and tax policies and investment in key infrastructure project categories could create more than 11 million jobs in the United States this decade.
The study analyzes how reducing corporate tax rates, establishing a permanent research and development (R&D) credit, modernizing the U.S. system of export controls and making major investments in energy and transportation infrastructure would create jobs and make the United States more competitive.
"This report makes a powerful case that manufacturing can lead the United States into a renewed era of growth -- if Congress enacts policies to promote U.S. competitiveness," said John Engler, NAM president. "This is a growth agenda. However, it requires policymakers to legislate with our position in the global economy in mind. It is critical that we accelerate our economic recovery and create jobs for the benefit of manufacturers, their workers and the entire U.S. economy."
"This report is designed to be an effective tool for policymakers to weigh the options they have -- both in policy and in investment -- to address the very real issue of jobs," said Ross DeVol, executive director of economic research at the Milken Institute. "It shouldnt be overlooked, however, that the policies and infrastructure projects analyzed are also key to the long-term competitiveness and continued economic growth of the nation."
Key findings include:
- Reducing the U.S. corporate income tax to match the average of other industrial countries (OECD nations) would trigger new growth. By 2019, it could boost real GDP by $375.5 billion and create an additional 350,000 manufacturing jobs -- increasing total employment by 2.1 million.
- A permanent R&D credit, increased by 25%, could boost real GDP by $206 billion (1.2%) and generate 316,000 manufacturing jobs.
- Modernizing U.S. export controls could increase exports in high-value areas, enhancing real GDP by $64 billion by 2019 and creating 160,000 manufacturing jobs.
The report also demonstrates the major economic impact that would result from investments in 10 areas of infrastructure -- highways and transit, broadband infrastructure, onshore exploration/offshore drilling, drinking water and wastewater infrastructure, smart grid, sustainability projects (natural gas and clean coal technology), nuclear energy, waterways and aviation (NextGen).
The proposed investments amount to $425.6 billion, creating 3.4 million construction- and R&D-related jobs. Accounting for ripple effects across other sectors, the total impact would add up to more than 10 million jobs. The impact on long-term competitiveness is just as critical.
The full report is available at www.milkeninstitute.org