Economic Profile

Overview of Economic Doctrines

Innovation Economics

Innovation Economics holds that it is innovation that drives growth and that the most important economic task for government is to promote productivity growth and innovation, even if such policies "distort" the market. While markets get it right some times, when it comes to spurring innovation and productivity, innovation economics holds that markets and price signals alone often are not enough. Therefore, innovation economics holds that policies to help institutions (e.g., entrepreneurs, firms, industries, universities, regions, and governments) to act in ways to increase innovation and productivity should be at the center of economic policy. Among other tools, this entails an array of public-private partnerships and public investments in the building blocks of innovation.

Supply Side Economics

Supply Side Economics holds that capital accumulation drives growth, and that the most important role for government is to remove disincentives to capital formation, especially by reducing taxes on capital and earnings. It holds that markets generally get it right, and that government intervention should be limited, including through a simple tax code with low rates and few deductions. But markets only get it right if they get the right price signals, so supply-side economics focuses on making sure that there are as few distortions to the market as possible. Finally, the overriding goal of supply-side economics growth; equity issues are best left to the market.

Liberal Neo-Classical Economics (Rubinomics)

Liberal Neo-Classical Economics (Rubinomics) holds that capital accumulation drives growth, and that the most important role for government is to spur more savings and investment by reducing the budget deficit and encouraging low and moderate income individuals to save more. It holds that markets generally get it right, but that government intervention is warranted to bring about fairer economic outcomes. But markets only get it right if they get the right price signals, so Rubinomics focuses on making sure that there are as few distortions to price signals as possible, including by favoring a simpler tax code with fewer deductions, and more progressivity.

Neo-Keynesian Economics

Neo-Keynesian Economics holds that it is the demand side of the economy that is most responsible for spurring growth, and that the most important role for government is to spur demand by expanding spending and public investment. It holds that markets often get it wrong, especially in terms of producing equitable outcomes, so active government intervention is warranted. Because markets are prone to underperforming, neo-Keynesians believe government should play an active role in ensuring that the economy runs at full employment, which they see as a key to helping workers benefit from economic growth. Finally, they see equitable distribution of economic output as a key goal, not just to promote fairness, but to promote consumer demand and faster economic growth.