A new essay details the key drivers of inflation and US public debt, the risks of inaction, and recommendations for tackling both. Authors Dana M. Peterson, Chief Economist of The Conference Board, and Lori Esposito Murray, President of its public policy center, the Committee for Economic Development (CED), elaborate on the solutions available to government. Options for inflation include reducing tariffs, unnecessary taxes, and regulation; promoting labor force participation; expanding immigration; and expediting infrastructure investment. Options for the public debt include reforming mandatory entitlement programs; increasing tax revenues in a fair and responsible manner; and more broadly, engaging in a fiscally responsible budget process.
Why It Matters Policymakers are not without options to address inflation, and slow, and perhaps reverse, the trend toward debt accumulation. But the fiscal policies need to be calibrated to ensure inflation is addressed without triggering deep recessions. Spending must be measured, cut where possible, tightened to promote work and productivity and avoid stimulus, and paid for. Perhaps most importantly, our leaders need to provide the political will for change.
Reactions to the passing of Queen Elizabeth II were a testament to how powerful her presence has been for the last 70 years. She set the values for the British people through some troubling times, and defined the nation’s character with her humanity, humility, and humor but also her commitment, work ethic, and innovation. If nations are brands, too, what can corporations learn from this country?
Why It Matters Customers actually do pay attention to where a product or a service comes from. Often, it’s a subliminal sense of what they can expect from their purchases as an indirect outcome of its provenance. In our recent survey, the effect of "country of origin" was explicit: in the US, 53 percent of surveyed consumers said they considered country of origin in their purchases. In first place, 60 percent said they would most likely buy again from the US, while the UK was ranked third. Meanwhile, 57 percent said they wouldn’t buy again if they discovered a product came from Russia. Perhaps this is a reflection on the character of the country’s leaders, and we can extrapolate that learning to the behaviors of our corporate leaders, too.
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Compensation is not the only—nor necessarily the most compelling—tool in attracting and retaining talent. Indeed, fewer than one-third of surveyed workers said pay is the most important consideration in choosing a job. Other factors that employees said matter to them include a robust retirement plan with matching employer contributions, flexibility in determining location and hours of work, generous paid time off, and a better job title (where real and deserved).
Why It Matters Many companies are experiencing extreme competition for talent, leading to more generous job offers and counteroffers. But offering higher wages for new hires can lead to a higher compensation structure for all employees. As signs of a recession mount, organizations must remain competitive in the war for talent while ensuring the optimum impact of every budget dollar. By reviewing your total rewards practices, you can better prepare for an increasingly likely economic downturn.
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“This is not a matter of if China will incorporate Taiwan fully into China. But it's a question of when and it's a question of how.”
— Lori Esposito Murray, President of the Committee for Economic Development, the public policy center of The Conference Board (CED), in the latest CEO Perspectives episode: Global Semiconductors: Supply at Risk?
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