New America Policy Papers

Promises, Promises: A Fiscal Voter Guide to the 2008 Election

Fiscal Policy — Thu, 21 Aug 2008 04:37:00 -0400

The United States faces serious fiscal challenges. Large budget deficits have returned, and shifting demographics along with growing health care costs are putting intense pressure on the long-term federal budget outlook. Over time, sustained deficits will weaken the economy and adversely affect the American standard of living.

The two major political parties' presidential candidates are campaigning on a lengthy list of policy initiatives, most of which would have significant impact on the federal budget. While not all of these proposals will become law, they do reflect the candidates' values and priorities, and the policies each candidate is likely to pursue once… more

The Assets Agenda

Asset Building — Thu, 07 Aug 2008 11:25:00 -0400

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 because they have behavioral effects that can change the manner in which people think about and plan for the future.

Past… more

Deadly Traffic: China's Arms Trade With The Sudan

adminn — Tue, 05 Aug 2008 15:40:00 -0400

As a result of the 2008 Beijing Olympics, China will be exposed to a greater global audience -- and greater global scrutiny -- than ever before. In order to put its best foot forward, the Chinese government has spent record amounts on everything from increased security to environmental cleanup.

But there are some Chinese policies that are too controversial to be "cleaned up" at the last minute. This is certainly the case with respect to China's role in arming Sudan's government. Chinese weapons transfers to the… more

Child Savings Accounts: A Primer

Asset Building — Fri, 01 Aug 2008 09:28:00 -0400

Executive Summary

Poverty reduction strategies increasingly focus on the importance of creating financial assets. Child Savings Accounts (CSAs) are a novel and promising tool that builds on that focus by promoting savings starting at a young age. Child Savings Accounts (CSAs) exist as policies, products, and programs, and are being offered by governments, financial institutions, and non-profits for a variety of purposes.

This primer aims to provide an overview of the concept of CSAs, various purposes for and features of the accounts, impacts CSAs can have on a child's development, and obstacles that impede the widespread provision of the accounts. By highlighting examples of CSA products, programs and policies, we aim to… more

Child Savings Accounts: Global Trends in Design and Practice

Asset Building — Wed, 30 Jul 2008 11:11:00 -0400

INTRODUCTION

Child Savings Accounts (CSAs) exist as policies, products, and programs, and are currently being offered by governments, financial institutions, and non-profits. CSAs are more than basic savings accounts. What distinguishes CSAs from standard savings accounts is the degree to which they serve as means to an end-most often to spur the social and/or economic development of children. Another distinguishing feature is they are often intentionally targeted to children of low- and moderate-income families (as opposed to only children of middle-class and well-off families).

The concept behind CSAs is based on the premise that saving is an important way for an… more

Global Savings, Assets and Financial Inclusion

Asset Building — Wed, 30 Jul 2008 06:14:00 -0400

Foreword

In 2000, 196 Member States of the United Nations committed themselves to halve extreme poverty in the world by the year 2015. Since then, broad availability of well-designed and appropriately delivered financial services and products, including those that lead to savings and productive assets, has become increasingly recognized as essential to alleviating poverty and fostering economic security and opportunity. Yet eight years later (and with less than eight years remaining to reach this goal), some three billion people worldwide lack access to basic financial services. Much remains to be done.

For three days in June 2007, the Global Assets… more

Asset Building Program in California

Asset Building — Thu, 24 Jul 2008 16:04:00 -0400

The purpose of New America's Asset Building Program is to significantly broaden savings and assets ownership in America, thereby providing all Americans both with the means to get ahead and with a direct stake in the overall success of our economy. While pursuing an ambitious policy agenda at the federal level, we recognize that it is at the state level, in our nation's ‘laboratories of democracy', where the most innovative policies are often enacted. For a summary of the legislative initiatives New America's Asset Building Program in California is pursuing in 2007-2008, please see the PDF below.

AutoSave Overview

Asset Building — Wed, 16 Jul 2008 13:00:00 -0400

The overview below revisits the proposal explored in a July 2006 Working Paper by Reid Cramer. Please click here to access that document, or see below for the updated overview.

AutoSave Overview

AutoSave is a unique savings plan that automatically diverts through payroll deduction a small amount of post-tax wages into a savings account. AutoSave's design incorporates key factors that encourage saving, such as facilitation of automatic transfers to a savings account through an existing system (here, payroll deduction) and use of defaults that simplify and ease decision making, requiring employees to take action not to save. To participate, employers would direct deposit… more

Rural Broadband and the TV White Space

Wireless Future — Wed, 25 Jun 2008 09:57:00 -0400

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 of this service has been slow. Larger wireless providers have focused exclusively on mobile broadband and have not deployed… more

Kids' Share 2008

Fiscal Policy — Mon, 23 Jun 2008 02:00:00 -0400

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 second annual Kids' Share report on the state of the children's budget looks comprehensively at trends in federal spending and… more

White Space Devices & The Battle Over Innovation:

Wireless Future — Thu, 19 Jun 2008 09:27:00 -0400

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 that white space devices will destroy television broadcasting and make wireless microphones inoperable. Why then, has a large and growing coalition… more

Redressing America's Public Infrastructure Deficit

Economic Growth — Thu, 19 Jun 2008 08:49:00 -0400

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 for financing infrastructure has become increasingly inadequate with the passage of time and has not kept up with the practices of… more

Sovereign Wealth Funds: Foreign Policy Consequences In an Era Of New Money

Ron Tang — Wed, 11 Jun 2008 03:44:00 -0400

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 focus on SWFs may, in fact, divert attention from the more fundamental foreign policy issue that these funds have come… more

Smart Globalization Policy Agenda

Economic Growth — Mon, 09 Jun 2008 14:35:00 -0400

The policy ideas that would make up the Initiative's competitiveness and growth strategy would fall under two main pillars of the Initiative. As noted earlier, the first pillar would consist of an international strategy to balance and respond to the economically dysfunctional practices of other economics and to create a supportive global economic environment for strengthening America's productive economy. The second pillar would entail policies to enhance America's competitiveness and promote domestic economic development through policies geared towards the maintenance and generation of higher-value added jobs.

1. An International Strategy to Counter the Mercantilist Practices of Other Economies and to Create A Supportive Global Economic Environment

Many of America's main… more

Public Comments on the Proposed Regulations On Foreign Investment Into the U.S.

Ron Tang — Mon, 09 Jun 2008 03:38:00 -0400

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 markets provide. As significant providers of capital, foreign investors have thus far been a positive influence on U.S. markets and… more

Financing America’s Infrastructure

Ron Tang — Sun, 08 Jun 2008 23:41:00 -0400

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 has lagged in infrastructure investment, in both relative and absolute terms. We are spending less than 2 percent of GDP… more

Iraq War Spurs Growth in Vehicle Manufacturing and Fuel Supply Contracts

adminn — Thu, 05 Jun 2008 13:59:00 -0400

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 BAE Systems, which purchased Armor Holdings Inc., producer of the Mine-Resistant Ambush Protected vehicle (MRAP), in July of 2007. BAE's… more

Twelve Principles for Fiscal Responsibility

Fiscal Policy — Tue, 20 May 2008 10:45:00 -0400

The United States faces a number of serious fiscal challenges. Budget deficits are back, the economy has weakened, Social Security is unsound, growing health care spending is putting immense pressure on the budget, tax policy is at a major crossroads, and borrowing is projected to reach unsustainable levels. Politicians will have to take concrete steps to confront these challenges, and some level of sacrifice will be required. The sooner decisions are made, the better-both because it will give the public more time to adjust and because it will allow us to spread the sacrifices more broadly.

The presidential campaign can either… more

Golden Dream Accounts

Asset Building — Wed, 14 May 2008 11:11:00 -0400

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 financial institutions have failed to fill the gap in employer coverage, in part due to the high fees and complexity… more

Employer Health Costs In a Global Economy

Health Policy — Tue, 06 May 2008 06:29:00 -0400

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 a variety of constraints that may make it difficult for them to fully shift health costs in the short run.… more