Blueprint For Renewing America's Economic Dynamism: A Progressive Vision.pdf

Editor: Will Marshall

Acknowledgements:
This blueprint for renewing America’s economic dynamism synthesizes research and policy ideas from pro-growth progressives, including PPI analysts, Senior Fellows, scholars, and independent experts. Key contributors include Robert Litan, Ian Hathaway, Michael Mandel, Carmen DeNavas-Walt, Bernadette D. Proctor, and others.

Introduction:
Today's populists focus on past industrial glory but lack practical ideas for a new American prosperity in today’s global knowledge economy. The U.S. faces economic challenges such as declining business dynamism, reduced GDP growth, and falling productivity, which have led to stagnant wages and a shrinking middle class. Since 2000, the rate of new business formation has dropped by about 20%, with more businesses closing than opening. This is concerning because start-ups often drive technological innovation.

Economic Slowdown:
GDP growth since 2000 averages less than two percent annually, while productivity growth fell to an average of 1.2% over the last decade. Real compensation growth also declined significantly due to reduced productivity. The U.S. middle class has lost ground financially, with a Pew Research Center study showing that by 2014, upper-income households received 59% of all personal income compared to 43% for middle-income families.

Class Divide:
The income gap between the richest and poorest Americans is wider than ever since measurements began in the 1960s. This growing divide challenges the Democratic Party’s principle of equal opportunity and raises questions about liberal democracy's ability to deliver mass prosperity and social mobility.

Plan for Revitalization:
Progressives need a credible plan to revitalize the private economy rather than merely redistributing wealth. The current hostility toward U.S. business and capitalism must be addressed to restore confidence in America's economic future.