The Budget's Misguided Parsimony
Business Week has an op-ed piece by its chief economist, Michael Mandel. It's a fairly dry and technical discussion of multifactor productivity (MFP), but the conclusion is unambiguous:
"Unfortunately, in an attempt to cut the budget deficit, the Bush Administration has held down government spending on R&D and education. The budget proposal calls for federal nondefense R&D spending for fiscal year 2006 to fall by 1% compared to the previous year, after inflation, while real outlays on education and training are proposed to drop by 6%. This misguided parsimony can only hurt the nation's ability to maintain a rapid pace of multifactor productivity growth. Putting more resources into technology and education is the best way to ensure that the bounty of higher MFP continues in the future."
"Unfortunately, in an attempt to cut the budget deficit, the Bush Administration has held down government spending on R&D and education. The budget proposal calls for federal nondefense R&D spending for fiscal year 2006 to fall by 1% compared to the previous year, after inflation, while real outlays on education and training are proposed to drop by 6%. This misguided parsimony can only hurt the nation's ability to maintain a rapid pace of multifactor productivity growth. Putting more resources into technology and education is the best way to ensure that the bounty of higher MFP continues in the future."
Labels: Outrageous, Policy
0 Comments:
Post a Comment
<< NIASAWHIWB Home