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There is no simple remedy for fixing the post-crisis global economy. But three key ingredients for sustainable long-term growth are jobs, equality and trust, said OECD Secretary-General in Washington.
The current political deadlock in the United States is needlessly putting at risk the stability and growth not only of the US but also the world economy. This comes at a time when a fragile recovery in advanced economies was underway, and when a number of emerging economies were already facing new risks.
A moderate recovery is underway in the major advanced economies, according to the OECD’s latest Interim Economic Assessment. Growth is proceeding at encouraging rates in North America, Japan and the UK. The euro area as a whole is out of recession, although output remains weak in a number of countries.
Income inequality and relative poverty in the United States are among the highest in the OECD and have substantially increased over the past decades. These developments have been associated with a number of other worrying statistics, including low intergenerational social mobility and weak real income growth for many households.
An OECD assessment jointly with the World Bank shows that nearly one in five commitments has been fully implemented. Progress is most advanced for tax and labour market reforms. Implementation is going more slowly for product market reforms, financial regulation and to improve human capital, reported OECD Secretary-General in Washington.
Although job creation has improved, since the end of the 2007-08 recession, the effects of the recession on the labour market remain severe.
The US innovation system has many strengths, including world class research universities and firms that thrive in innovation-intensive sectors.
The United States should do more to foster innovation and provide more equitable access to high-quality education in order to maintain its status as the world's most vibrant and productive economy, according to OECD's latest Economic Survey of the United States.
Strengthening education outcomes and innovation and putting public finances on a sustainable path would increase potential economic growth in the United States and, insofar as reforms increase equity in education opportunity and consolidation measures are progressive, reduce economic inequality.
A heated debate between Princeton University economist Paul Krugman and Harvard economic historian Niall Ferguson was a highlight of the 11th World Knowledge Forum*-held in Seoul, Korea from 12-14 October-and among the conference's most attended sessions.