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The Deficit Dilemma

Women on Business

In order to meet the deficit reduction goal in the next decade, the President intends to allow the Bush tax cuts to expire after 2012 for families who make $250,000 or more, and to bring the estate exemption and estate tax to 2009 levels (back to a $3.5 trillion and 11% of GDP!!!), million estate exemption and 45% estate tax).

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Excess Management Is Costing the U.S. $3 Trillion Per Year

Harvard Business Review

economy amounts to more than $3 trillion in lost economic output, or about 17% of GDP. Nearly all of these practices run counter to conventional banking wisdom, which holds that to be efficient a bank must consolidate operational activities and centralize decision making on matters like pricing and lending.

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Leading Job Growth in the Digital Economy

Harvard Business Review

In most countries, both developed and developing, private employment and median family income have stopped growing at the same pace as labor productivity and real GDP per capita—mostly due, they argue, to technological advances. So what are we to do? Learn from the countries that are bucking the trend.

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The Three Reforms China Must Enact: Land, Social Services, and Taxes

Harvard Business Review

The plan is expected to outline policies intended to ensure that China continues to see average annual GDP growth of 7% through this decade, the growth rate required to meet Premier Li Keqiang’s stated goal of doubling GDP by 2020. What Needs to Change. The first is the rural land ownership.

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The Right Way to Rebuild America’s Infrastructure

Harvard Business Review

Infrastructure spending as a percentage of GDP in the U.S. The Clinton campaign proposed a new infrastructure bank, to be capitalized by additional corporate taxes. A second common criticism is that such a bank might be pressured into distributing cash both inefficiently and for largely political considerations.

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India’s Botched War on Cash

Harvard Business Review

Prime Minister Narendra Modi launched a surprise in early November, demonetizing 500 and 1,000 rupee bank notes. Indeed, since the chaos erupted, the prime minister has tweeted : “Time has come for everyone, particularly my young friends, to embrace e-banking, mobile banking & more such technology.”

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If Greece Embraces Uncertainty, Innovation Will Follow

Harvard Business Review

This helps to explain why Greece has one of the lowest license and patent revenues from abroad as a percentage of its GDP, as well as one of the lowest contributions from high-tech product exports to its trade balance. In the long term the goal must be broader: to create an economy built around innovation, one that embraces uncertainty.