Gary Loveman

U.S. Overview: First Recovery, Then Takeoff?

Abby Joseph Cohen, Gary Loveman, Raymond McGuire, Jim Moffatt, Maggie Wilderotter, Ross DeVol, Ross Duvall, Abby Cohen

A March 2013 panel of Milken Institute analysts evaluated the U.S. economic recovery, noting a 2.5% Q1 growth rate that masks a sluggish labor market and a divergence where corporations hoard cash for buybacks rather than investing in small businesses or R&D. The discussion highlighted how European recession, regulatory uncertainty, and a global tax code incentivizing overseas profits have suppressed domestic expansion despite strong corporate profits and a housing market turning point. Experts concluded that achieving 4% growth requires resolving political gridlock, reforming the corporate tax system, and implementing structural investments in innovation and broadband to convert current financial slack into sustained job creation.