Washington: US Treasury Secretary Jacob Lew has said that America is facing a tough global competition because of its greying population. "We meet today during a period of fundamental change in our economy. Our population is growing older. The skills needed in today's workforce are shifting. Global competition for business and investment is becoming more intense. And technological innovation is happening at a rapid speed," Lew told a New York audience yesterday.
Observing that the core responsibility is to make sure the economy is as vibrant and robust for the children and grandchildren as it was for previous generations, Lew said the American story has always been one of embracing change capitalizing on groundbreaking ideas, inventions, and events to build a better future for the next generation.
"The combination of our innovative spirit and smart public policy has always been a recipe for success in this country," he said.
As the Obama Administration works to accelerate growth and create jobs, he said the US is facing economic challenges already in motion well before the economic crisis.
"For example, the labor force participation rate has been falling for some time now," he said.
Lew said America's workers are the most creative, hardworking and resilient in the world, and they are the backbone of US economy.
"But the growth in our workforce has slowed considerably. From 1948 to 2007, we added approximately 93 million people to the workforce, or 2 per cent per year. Since the recovery started, the average annual growth in the workforce was just 1 per cent," he said.
"Since 2008, the labor force participation rate has actually fallen by 2.7 per cent. The Council of Economic Advisors has estimated that about half of the decline is a result of our aging population," he said.
"The fact that Baby Boomers who contributed to the economy are leaving the work force to enjoy well-deserved retirement is a good thing; they are already on track to work longer than previous generations. But we should not allow a lack of employment opportunities or outdated skills to push a generation of workers into early retirement.
"We also need to make sure that young adults coming of age after the Great Recession are not trapped in a no mans land as the long-term unemployed," he said.
Lew said to encourage domestic investment, President Barack Obama wants to reform the tax system by lowering statutory business tax rates and leveling the playing field so that investment flows to where its return is greatest, not
simply where taxes are lowest.
Lew said there has never been a time when technological gains have caused decades of unemployment in the United States, but it is true that the transitions can be hard, and managing today's technological transition is critical.
"We need a deep commitment to Science, Technology, Engineering and Math education so that the next generation has the skills to keep making innovations, and the training to be analytical and innovative in a competitive and global market.
And Federal support for cutting edge research and development remains critical if we are to remain the leading innovator in the world," he added.
Comments
0 comment