Political Gridlock Holds Back US Economy: HBS Study

What’s the deal with the US economy? Factually speaking, slow growth seems to be the new normal. Between 1947-2000, the US economy grew 3.6 percent annually; since 2000, that rate has been 1.8 percent, according to The New York Times. Is it high taxes and government over-regulation, or the failure to implement Keynsian stimulus plans? Now, Michael E. Porter, co-founder of FSG, the prime mover of the Creating Shared Value concept, and a long-time expert on business competitiveness, has an answer as lead author of a Harvard Business School study, "Problems Unsolved and a Nation Divided." His bottom line: a dysfunctional political system prevents tax reform and investment in infrastructure. Read the full analysis and the solutions proposed by Porter and his HBS co-authors here.

John Howell, Editorial Director

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