Growth and Renewal in the United States: Retooling America's Economic Engine

14 Pages Posted: 21 Mar 2011

See all articles by James Manyika

James Manyika

affiliation not provided to SSRN

David Hunt

Independent

Scott Nyquist

affiliation not provided to SSRN

Jaana Remes

McKinsey & Co. Inc. - San Francisco Office

Vikram Malhotra

affiliation not provided to SSRN

Lenny Medonca

affiliation not provided to SSRN

Byron G. Auguste

affiliation not provided to SSRN

Samantha Test

affiliation not provided to SSRN

Date Written: March 18, 2011

Abstract

New research by the McKinsey Global Institute (MGI) examines the growth challenge facing the United States and explores how U.S. business and government can contribute to the economy's renewal by reinvigorating their drive toward higher productivity. As baby boomers retire and the female participation rate plateaus, the U.S. economy will receive significantly less lift from increases in the labor force and will have to rely increasingly on productivity gains to fuel growth. The report finds that the United States needs a 34% acceleration in productivity growth if it is to match the GDP growth rates of the past 20 years and that this is possible. Three-quarters of the necessary productivity growth acceleration can come from the efforts of private-sector companies operating within the current regulatory and business environment. Even the best-performing companies and sectors still have headroom to boost productivity by emulating the best practice of others and tapping into new innovations, and coming up with new innovations of their own. The remaining one-quarter and more can come from government and business working together to address barriers that now limit growth. MGI lays out a seven-point agenda for action to spur productivity.

Suggested Citation

Manyika, James and Hunt, David and Nyquist, Scott and Remes, Jaana and Malhotra, Vikram and Medonca, Lenny and Auguste, Byron G. and Test, Samantha, Growth and Renewal in the United States: Retooling America's Economic Engine (March 18, 2011). Journal of Applied Corporate Finance, Vol. 23, Issue 1, pp. 8-19, 2011, Available at SSRN: https://ssrn.com/abstract=1790186 or http://dx.doi.org/10.1111/j.1745-6622.2011.00310.x

James Manyika (Contact Author)

affiliation not provided to SSRN ( email )

David Hunt

Independent ( email )

Scott Nyquist

affiliation not provided to SSRN

No Address Available

Jaana Remes

McKinsey & Co. Inc. - San Francisco Office

555 California Street
San Francisco, CA 94104
United States

Vikram Malhotra

affiliation not provided to SSRN

Lenny Medonca

affiliation not provided to SSRN

Byron G. Auguste

affiliation not provided to SSRN

Samantha Test

affiliation not provided to SSRN

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