Michael Spence: Policy Proposals for the United States (4/5)

The video discusses the need for a balanced fiscal policy to address structural challenges, focusing on growth and employment, particularly in the tradeable sector. It highlights the importance of addressing skills deficits and improving the educational system. The speaker suggests overhauling the tax system to support growth and proposes a sensible energy policy to anticipate future resource price increases. The overall goal is to create a sustainable economic model that addresses employment and income inequality issues.

What is the primary focus of the fiscal stabilization strategy discussed in the first section?

• Increasing government spending

• Balancing economic growth with debt reduction

• Expanding the non-tradeable sector

• Reducing taxes on imports

Which sector is identified as needing to become an employment engine again?

• Healthcare sector

• Public sector

• Tradeable sector

• Non-tradeable sector

What is suggested as a major reform in the tax system?

• Raising corporate tax rates

• Increasing taxes on employment

• Eliminating all taxes

• Introducing a value-added or consumption tax

Who should be included in the conversation to address skills deficits?

• Only the business community

• Economists, policymakers, and the business community

• Only policymakers

• Only economists

What is a key component of the proposed energy policy?

• Ignoring natural resource price changes

• Focusing solely on fossil fuels

• Reducing investment in technology

• Anticipating rising natural resource prices