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Invest in "Domestic Emerging Markets"

Reducing Military Spending to Spur Economic Growth at Home

The Senate struggled to approve a $15 billion jobs bill and has yet to enact additional fiscal relief for the states, but lawmakers continue to approve trillions of dollars for wars and defense appropriations.  In fact, ignoring the almost $1 trillion spent on the Iraq and Afghanistan wars, military spending has grown 41 percent since 1998.  If progressive leaders intend to reduce long-term deficits and ensure a robust economic recovery, cutting inefficient and costly areas of the defense budget should be a top priority.

State Job Creation Strategies Part II: Supporting Innovation, Industrial Clusters and Green Job Creation

As we described last week in State Job Creation Strategies Part I: Finding the Money and Investing in Human Capital and Physical Infrastructure, competing globally for jobs starts with policy makers instituting fundamental investments in education, human capital and physical infrastructure that make their state a productive environment for economic innovation. The next step, as this Dispatch will describe, is helping the private sector leverage opportunities for job creation and technological innovation. 

Overview

Policyleaders should be critically concerned with using these new tools to reviveareas devastated by deindustrialization and chronic poverty. Around the world,"emerging markets" are hotspots for investment, so many states aretreating their low-income domestic areas as "domestic emergingmarkets" that just need a bit of patient capital in order to be revived.