In a world where over-reliance on government to steer, monitor, and correct private behavior has sucked the courtesy out of human discourse, it should come as no surprise that one of America’s largest educational institutions is reporting that political gridlock is hampering economic growth.
Harvard University’s Business School blames political stalemate in Washington for limited economic growth.
“The federal government has made no meaningful progress on the critical policy steps to restore U.S. competitiveness in the last decade or more.”
U.S. gross domestic product grew at a rate of about 2 percent since 2000, well below the 3 to 4 percent average in the prior half-century. … The study contends that factors including a growing wealth gap, declines in productivity growth, and a rise in the number of working-age people neither employed nor seeking jobs show that the U.S. economy is becoming less competitive.
At the same time, Harvard reports that the companies most likely to benefit from Washington’s corporate cronyism — larger companies and million-dollar-funded Silicon Valley startups — are keeping the wheels turning, while small businesses are no longer the lifeblood of America’s economic engine.
More damaging still, the authors were quoted saying that the distortion is growing in a political election season filled with mis- and disinformation.
To us, the confused national discussion about our economy and future prosperity in this election year is our worst nightmare,” they say. “There is almost a complete disconnect between the national discourse and the reality of what is causing our problems and what to do about them.
This misunderstanding of facts and reality is dangerous, and the resulting divisions make an already challenging agenda for America even more daunting.”
The lingering premise of the study, which has the subheadline: “Political Dysfunction is the Greatest Barrier to Strengthening U.S. Competitiveness,” suggests that Americans can’t drive economic growth without central government.
Could dismantling some of the regulatory hurdles that businesses face make it easier for Americans to contribute to growth? Of course, but that can’t be done without Washington’s cooperation in reducing government. So if America’s politicians can’t cooperate, how are the rest of us expected to get along?
One major irony of the report, which was cited in more than a dozen news stories on Wednesday and Thursday, is that its conclusions came from an overwhelming consensus of … Harvard alumni. That’d be Harvard alumni across party lines. Bet you didn’t know that was a thing. More amusing still, Harvard Business School’s tag line is: “We educate leaders who make a difference in the world.” What is less amusing is the likelihood that Harvard alumni populate a great number of the institutions faulted for the gridlock.
While a concurrent study showed that only a portion of the blame for lower economic growth goes to government among the general public across party lines, the Harvard study did make some suggestions that many may find at least somewhat appealing. They include changing the corporate tax code, allowing more highly skilled immigrants into the U.S., streamlining federal regulations, improving infrastructure, reforming the K-12 education system, and addressing unfair global trade practices.
Many of the news reports were cited on Harvard Business School’s news page, but the report itself was not clickable. It linked to an empty comments page. There’s gotta be irony in there somewhere.
