The Puzzle of the American Economy: How Changing Demographics Will Affect Our Future and Influence Our Politics

by Mark A. Pisano

Overview

Exploring how sweeping demographic changes have resulted in the ineffectiveness of recent monetary and fiscal policies, this book identifies corrective actions that will start to reverse the trends of low economic growth and widespread government deficits.

The field of demographics does not focus on the economic impacts and the funding issues resulting from demographic change. Similarly, economics does not take into account demographic changes. The omissions in both fields are negatively impacting the nation: income reductions caused by demographic changes that have not been accounted for are so large that current fiscal policies are not able to mitigate them. The Puzzle of the American Economy: How Changing Demographics Will Affect Our Future and Influence Our Politics exposes the factors that are undermining the nation's prospects for improving the rate of economic growth and keeping up with citizens' needs for government-provided services.

Author Mark A. Pisano explains the hidden drag on the economy that has led to the ineffectiveness of recent monetary and fiscal policies, how uncertainty in economic policymaking is affecting America politically as well as at the individual household level, and why those who are adversely impacted are becoming politically disaffected. He also presents an agenda for corrective individual action. Readers will understand how the results of changes in demographics will last for decades and extend beyond the United States to many developed countries-particularly Japan and nations in Europe-as well as to some developing countries. The book will be of value to students studying macro and micro economics; those in public policy at all levels of government, public administration, and governmental budgeting; and anyone attempting to understand the current dilemma in economic policymaking and our disjointed political process.

Product Details

ISBN-13:	9781440853111
Publisher:	ABC-CLIO, Incorporated
Publication date:	03/09/2017
Sold by:	Barnes & Noble
Format:	eBook
Pages:	166
File size:	3 MB

About the Author

Mark A. Pisano is Professor of the Practice of Public Administration at the University of Southern California, Sol Price School of Public Policy, USA.

Table of Contents

Acknowledgments vii

Part 1 Lessons from Demography

Chapter 1 Introduction 3

Chapter 2 "The Wonderful, Terrible, Inscrutable Economy" 7

Chapter 3 Historical Change, Economic "Behavior, and Demographics 21

Chapter 4 The Demographic Portrait 29

Chapter 5 Generation X and the Effects of Population Change 37

Chapter 6 What This Portrait Tells Us 51

Chapter 7 Implications for the Economy 61

Chapter 8 Implications for Government Budgets 75

Chapter 9 Long-Term Growth in America 83

Part 2 What We Can Do

Chapter 10 In Search of a New Paradigm 93

Chapter 11 The New Rules of the Game for a New Pathway 105

Chapter 12 Managing Our Fiscal Commons 117

Chapter 13 No One Is Disposable 129

Chapter 14 Conclusion 145

Bibliography 153

Index 159

What People are Saying About This

Scott Fosler

"Since the collapse of the bipolar world order in the late 1980s, American social sciences have been slowly awakening to the reality that demography—if not necessarily destiny—is a powerful shaper of the future. This reality is reflected in America’s aging population, with its fewer workers, consumers, and taxpayers, and its ever-more retirees, a quadruple whammy on national economic and fiscal capacity. Mark Pisano now interprets American demography with a new framework bolstered by quantitative support to demonstrate just how powerfully our changing population has already reshaped America’s prospects in the world economy. He links this framework to a wide range of practices and perspectives that until recently have hovered in the shadows of mainstream social science and policy thinking, topics such as regional governance and economic development, the critical role of institutions, the inadequacy of contemporary civic expression, and the accumulating structural constraints on economic growth. Pisano uses the demographic platform to integrate these related forces and provide a fresh and sorely needed perspective on the puzzle that is the American economy."

Timothy B. Clark

"Mark Pisano focuses on an oft-overlooked connection between our low-growth economy and disturbing population trends in the United States. Unless we solve the 'worker's gap' he describes, we will encounter economic decline, more cultural strife, and rising political rancor. Solutions he sees, such as increasing fertility rates and embracing immigration, won't come easily. But his plea that we treat 'no one as disposable' has the ring of moral authority."

Van Gordon Sauter

"A prescient, readable guide to the intensifying merger of economics and politics into the singular political and governance issue of our time. Pisano shows how American people, parties, and politicians must and can address it to preserve the national and fiscal coherence of our society."