Economic policy memo on productivity, employment growth, and tax/regulation recommendations

Focus on Productivity & Employment Growth, Each of Which Accounts for ~50% of Long-Term Real GDP Growth e Investments in Technology / Infrastructure / Education Boost Productivity. — Newer technology improves efficiency of communication and lowers costs of providing goods and services. — Better infrastructure reduces transportation costs for input and output materials — Better education improves general labor quality and enables specialization for more efficiency. e Removing Restrictions / Uncertainties in Various Regulations Can Stimulate Private Employment. — Immigration does not reduce employment opportunities for US-born workers, per Federal Reserve study in 8/10. — Removing tax / regulatory uncertainty could help create hiring incentives for private industries. e Hours Worked per Worker Have Remained Steady at ~39-40 Hours per Week From 1970 to 2009 and Will Likely Remain Steady. Source: OECD, Dale W. Jorgenson, Mun S. Ho, Kevin J. Stiroh, “Growth of U.S. industries and Investments in Information Technology and Higher Education” http:/Avwww.nber.org/chapters/c1 0627, Federal Reserve. www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 365 Focus on Revenues Invest in Technology / Infrastructure / Education Drive Sustainable Economic Increase / Improve Employment Growth = Improve Competitiveness Consider Review Tax Rates Sule EE Reduce Subsidies / Tax Expenditures*/ ee Ueiee Broaden Tax Base KP www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 366 HOUSE_OVERSIGHT_021024