Wednesday, October 19, 2011

Richard Bernstein - Turn America Into a Giant 'Enterprise Zone'

I started liking Richard Bernstein ever since I started reading his reports while I was working at Merrill Lynch.  Of all the economists that are out there, he appeared to be the only one who was right more often than he was wrong.

Bernstein wrote in the Financial Times about "Turn(ing) America into a Giant Enterprise Zone."  He mentions that the U.S. needs to move away concentrating on an economy that is driven by consumption and move towards building an economy which is more focused on production and exports.  I have been saying this (clearly not loud enough and without much credibility....just yet!) for a while now and believe that exports and production is going to have a sizable impact on the U.S. economy.

Bernstein mentions that we need to focus on creating an economy that is attracting international firms to build facilities in the United States and to hire domestically.  Giving these firms tax incentives will benefit the U.S. and will allow the government to realize tax revenue from the jobs which are created.  These new jobs will spur growth in their respective states, and allow the states, and the federal government to shrink the budget deficit.  The element which is very attractive is that it will cost nothing to try this technique and will only benefit the economy.

Read below:

- Saliq Khan -

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