Focus on Productivity & Employment Growth,
Each of Which Accounts for ~50% of Long-Term Real GDP Growth
e Investments in Technology / Infrastructure / Education Boost Productivity. — Newer technology improves efficiency of communication and lowers costs of providing goods and services. — Better infrastructure reduces transportation costs for input and output materials — Better education improves general labor quality and enables specialization for more efficiency.
e Removing Restrictions / Uncertainties in Various Regulations Can Stimulate Private Employment.
— Immigration does not reduce employment opportunities for US-born workers, per Federal Reserve study in 8/10.
— Removing tax / regulatory uncertainty could help create hiring incentives for private industries.
e Hours Worked per Worker Have Remained Steady at ~39-40 Hours per Week From 1970 to 2009 and Will Likely Remain Steady.
Source: OECD, Dale W. Jorgenson, Mun S. Ho, Kevin J. Stiroh, “Growth of U.S. industries and Investments in Information Technology and Higher Education” http:/Avwww.nber.org/chapters/c1 0627, Federal Reserve. www.kpcb.com
USA Inc. | What Might a Turnaround Expert Consider? 365
Focus on Revenues
Invest in Technology / Infrastructure / Education Drive Sustainable Economic Increase / Improve Employment Growth = Improve Competitiveness
Consider Review Tax Rates
Sule EE Reduce Subsidies / Tax Expenditures*/ ee Ueiee Broaden Tax Base
KP www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 366
HOUSE_OVERSIGHT_021024