No Pain, No Gain

Taxes, Productivity, and Economic Growth

Jary R. Mandle, Louis A. Ferleger
Release Date: December 1, 1992

During the decade of the 1980s, the glamour and scope of financial markets and financial “deals” masked the fact that they seldom addressed the issues of real economic growth. In the past dozen years real wages have declined, income distributions are more unequal, and our infrastructure is deteriorating faster than it can be replaced. Though long-term solutions to all of these problems exist, it is of course, whether we as a nation and society will want to train, innovate, and invest for the future.

The circumstances, causes, and remedies of our disappointing economic performance have been the topic of a number of scholarly debates. The goal in this paper is to bring all view points and concerns to a common understanding. The key policy questions and solutions for the future, as presented, are central to the economic debate and continue to focus on these current topics: tax burdens, tax progressivity for savings, investment, and productivity. The analysis of such current trends should help to better and fully understand what policymakers will have to do to establish and maintain long-term economic growth for our nation’s future.