Adding Education and Growth to Deficit Talks



By Education Next 12/13/2011

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In this video, Eric Hanushek and Terry Moe of the Hoover Institution discuss the role of economic growth in dealing with current deficit problems. The breakdown of Congressional fiscal discussions over the balance of spending cuts and taxes completely neglects the third option of increasing GDP growth, a policy that would deal with the long-run Medicare and Social Security issues. Improving long-run growth, however, will take significant changes in school policy – something that is very difficult to achieve politically.

Research by Hanushek which appeared in Ed Next in 2008 found strong relationships between achievement on accountability-based tests and economic growth. (See: “Education and Economic Growth,” Education Next, Spring 2008)




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