'This Week' Transcript: Economic Panel

We also -- and I think your quote that you started with actually frames what is the real problem. We have both a recession problem that was the result of the great financial crisis, but we also have this great transformation that's taking place across the globe. A lot of other countries are very competitive with the United States today, and we need to invest in our education system, in our infrastructure system, in our efforts to expand our exports, if we're going to be competitive as we go forward.

AMANPOUR: OK, well, let me ask -- let me ask about that, because when it comes to exports in manufacturing, we read quite a lot that America has been losing its competitive edge to places like China and -- and -- and other such. Laura, what do you think the United States can do to regenerate a competitive export in manufacturing?

TYSON: Well, I think the key word Jon raised is investment. And I think it is absolutely essential. You know, we get caught up in discussions of deficit reduction or stimulus. Let's forget those issues for a minute and just think about investment.

And here it is investment in a number of things. I've heard Senator Corker talk about the importance of infrastructure. For years going into the Great Recession, it has been noted that the U.S. has been investing inadequately in its infrastructure, maybe to the tune of $200 billion a year of economically justifiable investment infrastructures we're not doing.

Let me turn to investment in education. It is the case -- we used to be number one in the world in college graduation rates. We are now number 14, number 15. We're leading the world in high school dropout rates. And as I said, the unemployment problem is most severe in dropouts.

So invest in people. Invest in infrastructure. Invest in knowledge. You know, we basically are trying to get the research and development spending in this country up to 3 percent so we can again be leaders in the world in that. Invest, invest, invest is really what we must do.

Public-private partnerships, you know, with that, $100 billion of the stimulus package is levered to private spending. A dollar spent by the public sector on infrastructure can bring three dollars of private spending.

AMANPOUR: So, Martin Regalia, why isn't the private sector investing, investing, investing?

REGALIA: Well, I think, you know, our tax laws and our other regulatory structure in Washington don't foster that. We tax savings multiple times. We don't allow full cost recovery. We don't allow expensing on investment. We can't even pass an R&D credit extension that's been delayed for over a year through a Congress that's fighting with each other.

And when you don't have the kind of laws and the kind of tax structure that facilitate and encourage investment, you get a lot less of it. We tax our multinational corporations on their overseas profit. We're the only major trading country in the OECD that still does that, that doesn't have a territorially tax system.

And so what do we do? We tell our people, go out and export, and then we tell them, we're going to tax you more than every other people you have to compete with in the global economy.

Join the Discussion
blog comments powered by Disqus
You Might Also Like...