Gallup: U.S. Remains on Long-Term Productivity Decline

Despite the economic recovery since the Great Recession, the U.S. remains in a long-term decline in productivity, according to a pro bono study by Gallup commissioned by the U.S. Council on Competitiveness for the council’s 30^th anniversary.  The study, No Recovery An Analysis of Long-Term U.S. Productivity Decline, finds that since 2007, U.S. GDP per capita growth has been one percent, and Gallup Chairman and CEO Jim Clifton warns that “America is dangerously running on empty.” Problems with the economy did not start with the Great Recession, but have been prevalent for decades, the report contends.  While the tech sector, professional services and top universities are “world class,” the rest of the economy – especially the healthcare, education and housing sectors – act as drags and expenses with little value in return.

The deterioration in large sectors of the economy are reversible and can be linked to specific policies, rules and regulations that have resulted from decades of “weak political leadership – often at the state and local levels – and lobbying by interest groups,” according to the author, Jonathan Rothwell, Gallup senior economist. Reviving growth will require a new strategy since current debates are too focused on short-term partisan issues and the proposed solutions have not worked. 

A comprehensive discussion of all the ways to achieve higher economic growth is beyond the scope of the study, the author maintains; however, potential policy solutions based on the analysis provided in the paper will be forthcoming from Gallup.