Jobs for America: Investments and policies for economic growth and competitiveness
January 2010

With unemployment continuing to hover around 10 percent, policymakers are struggling to find the right initiatives that will get Americans back to work.

Jobs for America: Investments and policies for economic growth and competitiveness finds that changes to U.S. economic and tax policies can add 2.9 million jobs by 2019 and more than 3.5 million jobs can be created in each of the next three years by supporting investment in 10 key infrastructure project categories.

Jobs for America: Investments and policies for economic growth and competitiveness
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The study analyzes two different approaches to how the United States can retain and create new jobs – one on the policy side and the other on the investment side. The first outlines the potential growth in jobs and GDP that would result from changes to economic and tax policies and the second calculates the impact that $425.6 billion in government-supported infrastructure investments would have on job creation and the economy.

 
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  • Reducing the U.S. corporate income tax rate to match the OECD average would trigger new growth. By 2019, it could boost real GDP by $375.5 billion (2.2 percent), create an additional 350,000 manufacturing jobs, and increase total employment by 2.13 million.

  • Increasing the R&D tax credit by 25 percent and making it permanent could boost real GDP by $206.3 billion (1.2 percent), generate 270,000 manufacturing jobs, and raise total employment by 510,000 within a decade.

  • Modernizing U.S. export controls could increase exports in high-value areas. By 2019, these policy adjustments could enhance real GDP by $64.2 billion (0.4 percent), create 160,000 manufacturing jobs, and heighten total employment by 340,000.
  • The proposed investments analyzed in this report, totaling $425.6 billion across 10 projects over three years (with just over half in highway and transit initiatives), translate into $1.4 trillion in total output, including the ripple effects generated across all sectors.

  • Taken together, these 10 investments have the potential to create 3.4 million jobs directly and, including all the ripple effects, 10.7 million jobs in total (an average annual increase of 3.5 million across three years).

  • The projects outlined here could generate direct earnings of $147.1 billion (and total earnings of $420.6 billion, including all ripple effects).