New America Policy Papers

The current economic downturn, triggered in part by excessive household debt and deflating housing prices, underscores the central role asset ownership plays in the economic security of American families and the broader economy. Broad asset ownership, whether through savings or investment, has the potential to connect economic opportunity with economic security and ensure that every member of society is afforded a real stake in the commonwealth. Assets are important not only because they can be deployed productively or tapped to help individuals and families weather unexpected events, but… more

In 2004, the FCC initiated a proceeding to determine rules to allow the unlicensed operation of wireless communication devices in unused television band spectrum between channels 2 and 51. These vacant and unassigned television channels, known as the TV “white spaces,” would help make affordable wireless broadband in rural America a reality.

Although wireless is seen as critical to bringing high-speed and affordable broadband access to rural America, build-out and adoption… more

Children are a declining priority in the federal budget -- a trend that shows no signs of stopping. In 2007, the federal government paid out $2.7 trillion through spending programs and disbursed roughly another $1 trillion through the tax code. Rapidly expanding entitlement programs -- Medicare, Medicaid, and Social Security -- and the country's defense system consumed the largest shares of the budget, while spending on children remained essentially stagnant and did not keep up with growth in the economy.

Our… more

I wouldn't be surprised if you've never heard of a “White Space Device.” And yet, white space devices have the potential to be one of the most revolutionary new technologies to come along in the past twenty years. White space devices will have a greater positive impact than Wi-Fi and spur far more innovation than mobile phones. And yet, the trade press and inside-the-beltway media have been inundated by a massive PR campaign, and congressional offices have been swarmed by hundreds of lobbyists, all claiming… more

Chairman, Oberstar, Representative Mica, and Members of the Committee, thank you for inviting me to testify today on the question of "financing infrastructure investments."

Over the past several decades, we have accumulated a sizeable public infrastructure deficit. As a result, a variety of infrastructure bottlenecks-traffic congested roads, clogged ports, and an antiquated air traffic system, to mention just a few-have begun to undercut our economy's efficiency and undermine our quality of life.

One of the reasons for this infrastructure deficit is that our system… more

Over the past several months, few issues in international finance have generated as much discussion and comment as have Sovereign Wealth Funds (“SWF”s). This Committee deserves enormous credit for recognizing the potentially significant foreign policy consequences of the rapid accumulation by foreign governments of enormous, growing pools of capital. These large concentrations of government controlled wealth raise complex issues that transcend traditional boundaries between foreign policy, financial markets, international economics and national security.

It is my belief, however, that too much… more

The Honorable Nova Daly Deputy Assistant Secretary U.S. Department of the Treasury

Dear Mr. Daly:

We are pleased to submit these comments with respect to the recently proposed regulations regarding the implementation of the Foreign Investment and National Security Act of 2007 (“FINSA”) amendments to Section 721 of the Defense Production Act of 1950 (“Exon-Florio”).

Background

As a general matter, we believe that U.S. and global economic health are strengthened by the free flow of investment capital and by the increased liquidity that open… more

America’s basic infrastructure is outdated, worn, and in some cases, failing. Most experts agree that it is inadequate for meeting the demands of the 21st-century global economy. If we are to remain competitive, we must invest in capital assets like roads, ports, bridges, mass transit, water systems, and broadband infrastructure. Many other countries -- both rich and poor -- see investing in infrastructure as imperative for economic survival and success in an increasingly competitive economic environment. But the United States… more

The ongoing wars in Iraq and Afghanistan have spurred strong growth in Pentagon prime contract awards to companies involved in armored vehicle production and fuel supply. In the mean time, major arms makers like Lockheed Martin and Northrop Grumman have experienced much more modest growth rates.

Armored Vehicle Makers Benefit Most

A New America Foundation analysis of the Department of Defense's top ten contractors for FY 2007 found that the greatest increase by far from the prior year was posted by… more

As the percentage of workers covered by traditional employer pension plans has plummeted in recent years, saving has become the only path to secure retirement income beyond social security. Although a significant proportion of employers now offer their workers a tax advantaged retirement savings product like the 401(k), tens of millions of workers nationwide simply do not have access to an employer sponsored retirement savings plan. In addition, individual retirement accounts (IRAs) and other retirement products offered by private… more

Increasing Employer Health Costs, Lowering U.S. Competitiveness

Although most Americans get health insurance through their employers, business leaders are increasingly united in their belief that rising health care costs threaten America’s competitiveness in the global economy. Business support for comprehensive health reform has been growing as a result.

However, economists generally believe that it is workers -- rather than employers -- who pay for health care through lower wages. Although this proposition may hold true in the long run, employers face… more

In an economically mobile market economy, individuals and families are able to raise their private incomes, wealth, and ability (sometimes referred to as human capital) over time and across generations. In the United States, many associate economic mobility with the pursuit of the American Dream. Education, work experience, and saving enhance the opportunity for upward economic mobility. To this end, many federal spending and tax expenditure or tax subsidy programs aim to enhance economic mobility. But exactly how much does the… more

This Budget Update looks at the budget resolutions passed by both the House (H. Con. Res. 312) and Senate (S. Con. Res. 70), compared to each other as well as to the CBO March baseline and the President’s budget as reestimated by CBO.

Major Points The House-passed budget should be commended for complying with pay-as-you-go (PAYGO) rules without exception. The budget plan assumes that all changes to revenues and mandatory spending would be offset so that deficits would not be increased over… more

The authors of this paper are longtime federal budget and policy experts who have been drawn together by a deep concern about the nation’s long-term fiscal outlook. Our group covers the ideological spectrum. We are affiliated with a diverse set of organizations. We have been meeting informally for over a year, under the auspices of The Brookings Institution and The Heritage Foundation, to define the dimensions and consequences of the looming federal budget problem, examine alternative solutions, and reach… more

Today’s complex financial marketplace makes it increasingly difficult for individuals to understand and navigate the array of products and services available from a variety of financial service providers. For low to middle income individuals who have fewer financial resources to begin with, a solid grounding in personal finance and a clear understanding of the options and implications of one’s financial decisions are all the more critical.

While there is a wide range of financial education curricula available, there is a dearth… more

The Department of Energy (DOE) plans to undertake an extensive, multi-billion dollar investment in new nuclear weapons facilities and new nuclear warhead designs. The initiative, known as “Complex Transformation,” is unnecessary on strategic and technical grounds, not to mention exorbitantly expensive. The various plans being considered by the DOE have more to do with bailing out the nuclear weapons industry than they do with determining what size complex makes sense in an era of nuclear arms reductions. At a minimum,… more

In 2000, the Institute of Medicine (IOM) estimated that the “annualized economic cost of the diminished health and shorter lifespan of Americans who lack health insurance is between $65 and $130 billion for each year of health insurance forgone.”

After updating the IOM’s numbers to reflect growth in the economy and increases in the number of uninsured, we estimate that the poor health and shorter lifespan of the uninsured cost the U.S. economy between $102 billion and $204 billion in 2006.… more

Over the past eight years, states have dramatically expanded their support for publicly-funded pre-k programs, and the number of children enrolled in these programs has grown significantly. States are investing in pre-k because research shows that high-quality pre-kindergarten programs can have a positive long-term impact on children’s life outcomes, help narrow the achievement gap between poor and affluent youngsters, and that the benefits of these invest­ments to children and the taxpaying public outweigh their costs. In other words, high-quality pre-k is a key weapon in the… more

Thank you for your inquiry concerning whether the budget plan reported by the House Budget Committee increases taxes. The budget resolution does not raise taxes. Both tax rates and tax revenues as a share of GDP will increase under the budget resolution because tax increases are part of current law, not because of policies introduced as part of the budget resolutions currently under consideration.

Barring changes, taxes will increase beginning in 2011 due to the way in which the original 2001… more

The purpose of this annual report is to summarize and take stock of the current state of federal policy through an asset-building lens, especially as it affects the asset base of families with lower incomes and fewer resources, which is the focus of our work. The report is divided into three sections. The first is a review of policy developments from the past year related to asset building, highlighting administration action and significant legislation, including assets-related bills introduced in… more