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December 28th, 2009
Rather than spend trillions of dollars on fiscal stimulus to keep the economy on life support- as Japan has been doing for 20 years now - US policymakers should go in for an ambitious "government-directed industrial program to restructure the economy and make it viable again," Duncan argues. This would entail an additional $3 trillion investment in 21st century industries - $1 trillion each in solar energy, genetic engineering and biotechnology, and nanotechnology.
Such a massive government investment -- which could be easily funded (and he explains how)- would give the US an "unassailable lead in the technologies of the future" - and the US would be able to make products that the rest of the world desperately wants, "but which they can't buy anywhere else at any price." The kind of miracle that could be created with the $3 trillion government-directed program would be mind-boggling; no other country could envision investments on this scale, he reasons.
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