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Panel Detail:
Tuesday, April 25, 2006
7:55 AM - 9:15 AM
U.S. Overview: Will the Economy Stay on Top?
Speakers:
Thomas Donohue,
President and CEO, U.S. Chamber of Commerce
Douglas Holtz-Eakin,
Director, Maurice R. Greenberg Center, Geoeconomic Studies and Paul A. Volcker Chair in International Economics, Council on Foreign Relations; former Director, Congressional Budget Office
Jeffrey Kindler,
Vice Chairman, General Counsel, Chief Compliance Officer, Pfizer Inc.
Andrew Stern,
President, Service Employees International Union
Moderator:
Maria Bartiromo, Managing Editor, "The Wall Street Journal Report," Anchor, CNBC
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Jeffrey Kindler of Pfizer, second from right, tells the audience that America is losing its innovative edge. Other panelists, from left: Thomas Donohue, Douglas Holtz-Eakin and Andrew Stern, President.
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Most of the hot-ticket items in current policy were covered in this overview of the U.S. economy. While the panelists generally agreed that the economy is experiencing substantial growth, they also pointed out some key concerns in the areas of social security, wages and health care. They emphasized the importance of tackling these issues and better preparing the U.S. for an increasingly global economy.
The face of the U.S economy is shifting rapidly, and American workers are experiencing its growth pains firsthand. Andrew Stern of the Service Employees International Union remarked that while America’s GDP may be increasing, American wages are not. According to Stern, seven out of 10 Americans currently live paycheck to paycheck and the No. 1 resolution among Americans this year was to get out of debt. He worries that politicians are not recognizing or addressing the American workers' desire for financial stability. He called for the return to citizen action and stressed the need for Americans to get out and show their representatives that change is needed.
Jeffrey Kindler of Pfizer Inc. said he felt that America is losing its innovative edge. He pointed to the decrease in American science and engineering students as a major source of concern for America’s future. Thomas Donohue of the U.S. Chamber of Commerce commented that 30 percent of American students are not graduating, further stressing the concern that America’s youths are not prepared for the future.
Doug Holt-Eakin, former Director of the Congressional Budget Office, asserted that America also needs to worry about older workers. He reminded the audience that the average life span is increasing all over the world, dramatically changing the flow of labor and capital. The market is becoming more global, and international industries are currently the most productive industries. He sees a need to prepare older workers to deal with international competition.
Donohue agreed that workers are living longer and questioned who will support these workers when they retire. He asserted that workers cannot expect the company pensions that were commonplace 50 years ago, and that increased worker productivity means fewer people paying into social security. Holtz-Eakin agreed that the great experiment of social security is over but stressed that the people should understand that the policy process supports them. He contended that people will be paid the benefits owed to them; however, government needs to make changes for the future while honoring its current promises.
From there, the discussion made an easy transition to health care. All panelists agreed on the importance of revamping the current health-care system, but they differed significantly in their solutions. Kindler argued for more action in preventative care. He said that the percentage of undiagnosed illness is way too high in America, and that as a country, we are not doing enough to lower our risk of illness. He stated that the ideal health-care scenario would include cooperation between government, the private sector and unions to put greater emphasis and more money into preventative medicine. He called the current system a “sick-care” system, where the riskiest portions of the population are being treated in the worst possible way: They enter the system only after their illness has progressed to emergency-room status.
Holtz-Eakin spoke up to say that no solid scientific evidence exists yet to demonstrate that preventative care really saves money. At best, it may help extend life expectancy or improve quality of life, and said we need to acknowledge that health-care costs have always outpaced income per capita. This is attributable to rapid changes in technology embraced by Americans, he explained. To reduce costs, he suggested adopting a more selective approach to technology changes. Instead of embracing every new approach, American health care needs to consider the costs of technology and weigh its worth.
The session brought up interesting and important points that need to be addressed in U.S. domestic policy. America appears to be continuing as a strong force in the global economy, but it must address some of these key issues domestically. Policy-makers need to place greater emphasis on improving the situation for the American worker, specifically, to increase wages, redesign retirement plans and ensure health-care access to all citizens.
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