Lettieri will speak on the decline of economic dynamism in the United States and its implications for achieving the American Dream
Washington, D.C. – Today, John Lettieri, co-founder and senior director for policy and strategy at the Economic Innovation Group (EIG), will testify before the Joint Economic Committee at its hearing on the state of entrepreneurship entitled, “The Decline of Economic Opportunity in the United States: Causes and Consequences.” The hearing will take place at 10:00 a.m. in room 1100 of the Longworth House Office Building.
Additional witnesses include Dr. Timothy Kane, JP Conte fellow in Immigration Studies at the Hoover Institution, who will present on behalf of the Honorable Edward Lazear, professor of economics at the Stanford University Graduate School of Business, the Morris Arnold and Nona Jean Cox senior fellow at the Hoover Institution, and the former chairman of President George W. Bush’s Council of Economic Advisers; and Dr. Jared Bernstein, senior fellow at the Center on Budget and Policy Priorities.
“The decline of dynamism poses a threat to economic opportunity and upward mobility for future generations,” said Lettieri in his prepared testimony. “Access to opportunity suffers when incumbents are too powerful, markets are too concentrated, and entrepreneurs are an endangered species.”
Lettieri also stated, “[O]ur solutions should not fundamentally be aimed at making the economy look more like the past, but rather at ensuring that the benefits of tomorrow’s economy are broadly shared.”
Lettieri’s full written testimony can be viewed here.
Key highlights are below:
Trends in Economic Dynamism. Contrary to conventional wisdom, the United States economy is suffering from too little change, not too much. Despite the many technological advances of the digital age, Americans are now less likely to start a business, move to another region, or switch jobs than at any other time on record. These trends emerged in the early 2000s, but accelerated sharply with the onset of the Great Recession.
Consequences Of Declining Dynamism. The decline of economic dynamism will have far reaching consequences if unaddressed. It has already corresponded with a shrinking stock of U.S. firms, diminished labor market opportunities, increased market concentration, and more profound geographic inequality as the benefits of opportunity accrue to smaller shares of the American population.
Policy Solutions. Policymakers should implement forward-looking solutions aimed at ensuring that the benefits of tomorrow’s economy are broadly shared. An effective opportunity agenda will focus on new firm creation and competition, enhancing geographic mobility and labor market fluidity, investing in the future through infrastructure and research, and expanding the federal government’s commitment to the economic statistical agencies and evidence based policymaking.
About John W. Lettieri
John Lettieri is co-founder of the Economic Innovation Group (EIG) and serves as its senior director for policy and strategy. He leads EIG’s policy development, economic research, and legislative affairs efforts. Prior to joining EIG, John worked in both the public and private sectors, including as Vice President of Public Policy for the Organization for International Investment (OFII) and as aide to former U.S. Senator Chuck Hagel. Lettieri is a graduate of Wake Forest University and serves on the Board of Regents at The Fund for American Studies, the Board of Directors for Lincoln Network, and the Board of Directors of Friends of National Zoo.
About the Economic Innovation Group (EIG)
The Economic Innovation Group (EIG) is an ideas laboratory and advocacy organization whose mission is to advance solutions that empower entrepreneurs and investors to forge a more dynamic American economy. Headquartered in Washington, D.C. and led by an experienced, bipartisan team, EIG convenes leading experts from the public and private sectors, develops original policy research, and works to advance creative legislative proposals that will bring new jobs, investment, and economic growth to communities across the nation. For more information, visit eig.org.