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But, with declining oil prices during the global recession, former President Rafael CORREA Delgado defaulted in December 2008 on Ecuadors sovereign debt of approximately US3.2 billion in May 2009, Ecuador bought back most of its 'defaulted' bonds at an Mary C. Summer.The economy reached a growth rate of 6.4 in 2008, buoyed by high global petroleum prices and increased public sector investment. 2020 Methods Lecture Promo Image. Daly's Speeches From Gaps to Growth: Equity as a Path to ProsperityClaudia Goldin, the Henry Lee Professor of Economics at Harvard University and a past president of the American. Official website of the Council of Economic Advisers Charged with offering the President objective economic advice on the formulation of both domestic and international economic policy Contact your local Federal Depository Library To access a physical copy of Economic Indicators Purchase individual issues or a subscription From GPOs Online BookstoreMary C.
They just have to work hard and play by the rules. Economic empowerment and ending violence against women were two of her.As Americans, one of our most deeply held beliefs is that anyone, no matter where they come from or who they are, can make it. Bachelet was elected President of Chile on two occasions (2006 2010 and.
And then, an economy that leaves large numbers of people behind starts to seem normal.Today, I’m going to talk about why this way of looking at the world limits our potential, and how we can use the lessons of the pandemic to forge a more equitable society—one with fewer gaps and greater prosperity for all.Before I go on, I’ll remind you that the views I will express today are my own and do not necessarily reflect those of anyone else within the Federal Reserve System.Now, before we imagine a more equitable world, it’s important to take stock of the one we have. We forget that the gaps we see every day reflect accumulated inequities—the long tail of policy, luck or inattention that has made it easier for some and harder for others to reach their potential. We live a certain way for long enough, and we begin to believe that’s the way it’s supposed to be. And long standing gaps in economic opportunity and well-being have grown deeper and wider.As humans, we are adaptive. COVID has taken the most from the people and communities that are least able to bear it. The pandemic has shined a vivid light on the deep roots of economic inequity, forcing us to recognize that the rules aren’t the same for everyone.
It leaves countless people contributing less than their talents and interests would allow, sometimes sidelining them completely.To get a sense of what we stand to gain from building a world with few gaps, it’s useful to review what some of the disparities look like. And this bridles our economy’s potential. It can make us think that the world we have is all it could ever be. Amazing stories of people starting with little and doing a lot—confirming our belief that markets work efficiently and human capital is put to its best uses with few mistakes.But this can be misleading. In other words, no matter where you are born or how you start out, the marketplace will ensure that you land where you’re supposed to be.And there are many examples of this being true. Unless there is blatant market failure—collusion, discrimination or other obvious barriers to entry—we believe that any differences in initial conditions will smooth out over time.
Black college graduates are less likely to be employed than white college graduates and, when they do find jobs, are more likely to be in occupations that do not utilize, or even require, their skills. They continue on into the labor market and beyond. 4But the gaps don’t end with education. By comparison, only 27% of white students had left without graduating.
Economic Indicators By President Full Potential To
Hispanic Americans, women, indigenous Americans, people living in rural areas, and many other groups persistently fall behind, with lower rates of education, employment and earnings than we might expect if opportunities were equitably available. But it doesn’t stop there. 6In the end, this means that fewer Black men and women are contributing their full potential to the economy. Indeed, in work I’ve done, we found that the earnings gap between Black and white college-educated men doubles over the first 15 years of their professional life.
We don’t regularly calculate the losses from exclusion or the potential gains from being more inclusive—at least, not on an aggregate, economy-wide level. The question is, why do we?One reason is that we don’t fully understand what we’re missing. No entrepreneur would ever stand for it. It keeps millions of people on the sidelines or underutilized, and sells the economy short. But it’s also unproductive.
9 More recently, a study conducted by leading researchers in the private banking sector found that closing gaps between Black and white adults in wages, higher education, home ownership, and entrepreneurship would have led to a GDP boost of $16 trillion over the past 20 years, and a projected $5 trillion gain over the next five years. For example, a 2014 study found that closing racial gaps in income in 2012 would have increased GDP by $2.1 trillion that year. What we found was significant.When gaps are closed, the gains from equity are nearly $23 trillion over a 30-year period—a large piece of the economic pie unrealized or simply left on the table by tolerating the gaps that we see.Other studies have found similar potential gains. We then recomputed the potential output for each year. And we gave racial and ethnic minorities the values of their white counterparts.
Moreover, they showed that most of this improvement came from reducing human capital barriers and labor market discrimination. 11 They find that better allocation of these workers throughout the economy—putting talent where it was needed—accounted for between 20 and 40 percent of the total growth in U.S. They look back in time and examine the economic impact of taking down barriers to entry for women and Black workers in the fifty years spanning 1960 to 2010.
Economic Indicators By President Driver Of Economic
12 In other words, ideas determine how quickly the economic pie grows.His theory tells us that we can boost GDP growth by investing in strategies that foster the development and implementation of ideas. He hypothesized that the driver of economic growth is really ideas—innovations in thinking that lead to the development of new technologies, higher productivity, and more and faster growth over the long run. Reducing disparities could also increase the economy’s long-run rate of growth.To understand why, we need to go back to the 1980s, when future Nobel laureate Paul Romer had an idea. But the gains are likely to go beyond a boost in the level of GDP.
Wealth enables people to implement their ideas. 13Another way to encourage idea generation is to create more equitable ways to fund them. Investing in students at an early age and offering them a pathway to learn is equally important. Think of all the computer programmers out there who started coding as kids. And it doesn’t always take a four-year degree. Education equips people with the knowledge and the skills they need to innovate.
Less diverse teams eat into profitability. A large and growing body of research shows that diverse teams enhance performance. 15 This means that whole communities of people have less financial support for putting their innovations into practice.Finally, we need to increase diversity and inclusion in businesses and government. 14 Gaps in financing or borrowing to fund ideas are also large.
When she tells her teacher she is leaving, he doesn’t blink. And the young girl, needing to assist, drops out of school. But the family finances, and the family itself, fall on hard times. A girl from a lower income family does well in school, reads a lot, likes to learn. The best teams are the most diverse teams—ones that include a range of views, backgrounds and experiences.The bottom line is this: making sure everyone has a chance to generate and nurture their ideas is good for growth, and ultimately delivers greater prosperity to us all.Now, I want to leave you with a story.
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