Economists To G-8: Want Growth? Try This
If economists were cheerleaders, their favorite shout-out might be: "What do we want? Growth! When do we want it? Now!"
They won't actually shout those words, but they may be thinking them as global leaders meet this week for a G-8 summit. Economists are hoping that at the gathering in Northern Ireland, leaders of eight major economies will discuss expanding global trade and investment to spur job creation.
"The world needs growth," said Scott Miller, a trade policy expert for the Center for Strategic and International Studies, a research group.
Too many countries have legions of unemployed people but too few tools to boost job creation, he said. That's because their leaders are trying to cut government deficits, limiting their ability to fund "stimulus" programs. At the same time, central bankers can't lower interest rates further because they already have done lots of slashing.
So if you can't spend government money or cut interest rates, where can you find a hot poker to jab the economy and get it moving?
"Trade is where the growth is now," Miller said Friday at a gathering of economists and trade experts at the Peterson Institute for International Economics. Miller and the other participants were poring over new data put together by the institute.
The study's conclusion was: "Increased trade means more jobs in the export sector, and export jobs are generally better paid than jobs in other sectors of the economy."
Economists say examples abound. Here's just one: Honda Accords built in Marysville, Ohio, are shipped to South Korea. The Buckeye plant now has 4,400 workers and is undergoing a $23 million expansion.
Europe
Obama Begins European Trip With G-8 Summit In Ireland