Summary by Michelle Lai

This article discusses the formation of a new group, mostly made up of democrats, who want to ‘Rebuild America’ by promoting growth through investment to the public and to the next president that takes office. To achieve this goal, short-term consumption would be deferred in favor of savings and long-term investment in education, industrial revitalization, and infrastructure. In the long run, the investment, which runs an estimated total of $500 million to $1 trillion, would strengthen the economy and the tax base.

The idea comes at the heels of economists who want to recapture the growth issue from the supply siders and concentrate on productive investment instead of pushing austerity. Capital formation would be encouraged by incentives and policy makers are urged to consider the effects on investment when crafting policies. The problem that surfaces is that taxes need to be increased, as redirecting current government spending to more productive uses would still be insufficient to provide such investment capital. While this is unappealing, democratic pollsters agree that the group gives the “big- picture vision” that is absent in the Presidential campaign and suggests that voters, expecting a better America in the future, would be willing to sacrifice. In addition, the reduction of the federal deficit would reduce federal drain on national savings.