The Clinton-Gore Administration: Sustaining America’s Prosperity -- Highlights of the 2001 Economic Report of the President

The Clinton-Gore Administration: Sustaining America’s Prosperity -- Highlights of the 2001 Economic Report of the President

January 12, 2001

Chapter 1: The Making of the New Economy

This year’s Economic Report of the President examines the emergence of a New Economy, documenting the breadth of this change, and examining its implications. The Report defines the New Economy by the extraordinary gains in performance -- including rapid productivity growth, rising incomes, low unemployment, and moderate inflation -- that have resulted from a combination of mutually reinforcing advances in technologies, business practices, and economic policies.

Chapter 2: Macroeconomic Policy and Performance

This chapter reviews macroeconomic developments during the past year and offers the Administration’s economic forecast. It also examines the long-term fiscal outlook and the importance of preserving the fiscal discipline that has been so critical to the expansion.

Chapter 3: The Creation and Diffusion of the New Economy

This chapter looks at the sources of performance improvements in plants, firms, and industries. It traces these improvements to innovation in information technology (IT), complementary changes in organizational practices that enhance the productivity of firms using IT, and the emergence of a more competitive business environment.

Chapter 4: The New Economy in a Global Context

This chapter describes how U.S. participation in the global economy has been critical to the emergence of the New Economy. Improved technology leads to increased international trade and investment, while deeper integration into the world economy makes available larger markets and lower-priced imports that spur innovation and benefit both consumers and firms.

Chapter 5: Living in the New Economy

This chapter describes how the New Economy and Administration policies combined to improve the quality of life for the vast majority of Americans. A key theme is the continuing need for government involvement to enable all to share in the benefits of the New Economy.



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