INTRODUCTION
The United States faces a genuine, long-term economic crisis.
Whatever else the new president accomplishes, the American peo-
ple will hold him directly accountable for providing a new strategy
for rebuilding the American economy.
By nearly every basic measure, the U.S. economy s fundamental
capacity to create wealth has been deteriorating. The presidential
campaign focused on the protracted slowdown of the last four
years, but the problem has be*n unfolding for a generation. Over
the last 20 years, America s productivity gains, net investment
rates, income gains, and overall growth all have lagged behind the
records of both other advanced economies and our own past per-
formance. The choice is clear: change, or face smiled living stan-
dards for the rest of this century attd beyond.
To reverse these trends, the new President must leave behind the
conventionai economic prescriptions of both Right and Left. His
strategy must go beyond the traditional conservative approach by
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