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U.S. Investment Trends: Impact on Productivity,
Competitiveness, and Growth
A monograph published April 1991 by the ACCF Center for Policy Research.
Introduction
Is the rate of U.S. capital formation sufficient? What is the most appropriate
measure of investment? To answer these questions, and to investigate the
relationship between U.S. investment trends and economic growth, the American
Council for Capital Formation Center for Policy Research sponsored a symposium
on November 8, 1990. The symposium, entitled "U.S. Investment Trends:
Impact on Productivity, Competitiveness, and Growth," was the third
in a series of three roundtable discussions that the ACCF Center for Policy
Research organized in 1990 as part of a special project on "Tax and
Environmental Policies & U.S. Capital Costs."
This monograph contains the paper and responses prepared for the symposium
as well as the luncheon address by Council of Economic Advisers Chairman
Michael J. Boskin. The panel of experts agreed that while investment is
difficult to measure, the growth rate of the net capital stock appears
to be a more useful concept than yearly gross investment spending. The
net capital stock grew more slowly in the 1980s than in earlier years,
indicating that improving the climate for investment and economic growth,
through tax policy changes and other measures, must be given high priority.
We hope this monograph will prove useful to decision makers as they consider
the fiscal policy alternatives.
We extend our sincere thanks to the experts who participated in the November
symposium and subsequently assisted in the preparation of this monograph.
We also express our deep appreciation to the groups that provided financial
support for the 1990 special project on "Tax and Environmental Policies
and U.S. Capital Costs": American Business Conference; American Petroleum
Institute; BankAmerica Foundation; Chemical Manufacturers Association;
Clean Air Working Group; Exxon Company, U.S.A.; General Electric Company;
The Henley League, Ltd.; Manufacturers' Alliance for Productivity and
Innovation; National Venture Capital Association; Shell Oil Company; Thermo
Electron Corporation; and Weyerhaeuser Company.
We look forward to sharing additional insights about the relationship
between U.S. tax and environmental policies and economic growth through
our symposium and publication programs in 1991, as we continue and broaden
our investigation of this important subject.
Charls E. Walker, Chairman
Mark Bloomfield, President
Margo Thorning, Director of Research
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