The U.S. Savings Challenge: Policy Options For Productivity And Growth

by Charls E. Walker, Mark A Bloomfield, Margo Thorning

Overview

Concern about the low U.S. saving rate and its negative impact on capital formation and economic growth prompted the American Council for Capital Formation (ACCF) Center for Policy Research to launch a multifaceted, three-year project to explore this issue in 1988. This volume is one element of that project. This book contains slightly updated versions of the papers presented at a two-and-one-half-day conference entitled Saving: The Challenge for the U.S. Economy, held in Washington, D.C., in October 1989.

Product Details

ISBN-13:	9780367312282
Publisher:	Taylor & Francis
Publication date:	05/31/2021
Pages:	408
Product dimensions:	5.81(w) x 9.31(h) x (d)

About the Author

Mark A. Bloomfield, Esq., is president of the American Council for Capital Formation and its economic education and research affiliate, the ACCF Center for Policy Research. Dr. Margo Thorning is chief economist of the American Council for Capital Formation and director of research of the organization's affiliated ACCF Center for Policy Research. Dr. Charis E. Walker is chairman of the American Council for Capital Formation and its affiliate, the ACCF Center for Policy Research. Dr. Walker also is chairman of Charis E. Walker Associates, Inc., a Washington, D.C.- based consulting firm.

Table of Contents

List of Tables ix

List of Figures xiii

Preface xvii

Introduction Charls E. Walker Mark A. Bloomfield Margo Thorning xix

Part 1 The U.S. Saving Challenge: Policymaker Perspectives

1 U.S. Economic Growth and the National Saving Rate Nicholas F. Brady 3

2 Policy Prescriptions for Raising U.S. Saving Michael J. Boskin 8

3 U.S. Fiscal Policy and Saving Manuel H. Johnson 16

4 Lagging U.S. Saving: Threat to U.S. World Leadership Paul A. Volcker 24

Part 2 U.S. Saving and Investment Rate: Cause for Concern?

5 What Is National Saving? Alternative Measures in Historical and International Context David F. Bradford 31

Discussion

Patric H. Hendershott 75

Charles L. Sckultze 82

6 Domestic and International Consequences of Low U.S. Saving C. Fred Bergsten 89

Discussion

Clive Crook 102

Lee H. Hamilton 105

Mervyn A. King 108

7 Investment in Education and U.S. Economic Growth Dale W. Jorgenson Barbara M. Fraumeni 114

Discussion

Roberts T. Jones 141

Jacob Mincer 143

Paul S. Sarbanes 147

Part 3 Strategies for Increasing U.S. Saving

8 Tax Policies for Increasing Personal Saving 153

A Stimulating U.S. Personal Saving Lawrence H. Summers 153

B Prospects and Policies for Higher Personal Saving in the 1990s James W. Christian 176

Discussion

Jacob S. Dreyer 194

Ed Jenkins 198

9 Capital Gains Taxation and the Cost of Capital 201

A Capital Gains Tax Differential: Impact on Capital Costs George N. Hatsopoulos 201

B Capital Gains Taxation and the Cost of Capital for Mature and Emerging Corporations Yolanda K. Henderson 216

Discussion

Bill Archer 238

Michael R. Darby 241

10 Tax Policies for Increasing Business Saving James M. Poterba 244

Discussion

Benjamin M. Friedman 260

Harry D. Garber 265

Jim Moody 270

11 The Federal Deficit, National Saving, and Economic Performance Joel L. Prakken 273

Discussion

Martin Feldstein 309

Warren B. Rudman 311

12 Social Security Surpluses: How Will They Be Used? Alicia H. Munnell 314

Discussion

Henry J. Aaron 340

Stephen J. Entin 344

Sander M. Levin 352

13 Consumption Taxes Versus Income Taxes for Deficit Reduction and Tax Restructuring John B. Shoven 355

Discussion

Benjamin L. Cardin 381

Charles E. McLure, Jr. 384

About the Editors and Contributors 389

Index 399