This report examines the benefits and challenges of developing an effective adjustment policy for workers who lose their jobs because of outsourcing or any other adverse effects of trade. The statement, approved by CED's Research and Policy Committee states, "The most important next step is to recognize that adjustment policy is vital to achieving free trade -- which, in turn, is vital to the nation's economic future." The statement concludes that America needs to develop the national will to devise and fund an adjustment policy that will get to "yes" on trade. Complete listing and access info »

Much debate has arisen in recent years over the state of the legal system in the United States and proposals to drastically alter it. More attention is being directed towards the economic consequences of our litigation-centered legal regime, such as the impact of medical liability on health care costs. The Bush Administration has made legal reform a high priority. This is a worthy and necessary discourse, but the debate unfortunately has deteriorated into partisan quarreling. In this climate, there is little hope for achieving a real resolution that protects individuals and promotes economic activity. The present debate must move towards a bipartisan exploration of sensible reforms and innovative solutions. Complete listing and access info »

The Personal Responsibility and Work Opportunities Reconciliation Act of 1996 (PRWORA), the landmark legislation that radically reformed the welfare system, has been in a state of legislative limbo since 2002, when the law expired. Congress has been unable to agree on reauthorizing legislation. Instead, the program has been temporarily extended several times. This lack of action hinders states and localities in their long-range planning because of uncertainty regarding funding levels and program changes that may be mandated. Congress must reauthorize PRWORA now so that the progress of welfare reform may be advanced.

The Committee for Economic Development (CED) issued proposals for reform that address the major issues in the current reauthorization debate in a report, Welfare Reform and Beyond: A CED Policy Update. That report updated a previous policy statement, Welfare Reform and Beyond: Making Work Work, which provided a comprehensive analysis of the progress of welfare reform.
CED argues that welfare reform is not only a matter of economic security to millions of families working their way out of poverty and into self sufficiency; it is vitally important to the strength of our workforce. Baby-boomers are nearing retirement age, and the U.S. native-born labor force will soon stop growing. Therefore, turning welfare recipients into skilled, productive workers able to meet our future labor needs is critical for economic growth, not solely social fairness. Prompt Congressional action is required to pass reauthorization legislation that will provide states and welfare families with the flexibility and resources they need to continue the success of welfare reform.

When making improvements to welfare, lawmakers must remember that the goals of welfare reform should be to increase personal responsibility and selfsufficiency, enhance job prospects, and help families out of poverty -- not simply to reduce welfare caseloads. Because welfare is such a vital part of efforts to reduce poverty and promote broad-based economic growth, and because states must know what budgetary and programmatic changes they need to make, it is imperative that Congress pass a full reauthorization of welfare now. Below are CED's recommendations for action on the key issues in the welfare reauthorization debate.
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A Committee for Economic Development newsletter. Complete listing and access info »

A Committee for Economic Development newsletter. Complete listing and access info »

Education, perseverance and motivation are all major factors determining productivity, both in the workplace and beyond it. The family is a major producer of these skills, which are indispensable for successful students and workers. Unfortunately, many families have failed to perform this task well in recent years. This retards the growth in the quality of the labor force.

Dysfunctional families are also a major determinant of child participation in crime and other costly pathological behaviors. On productivity grounds alone, it appears to make sound business sense to invest in young children from disadvantaged environments. An accumulating body of evidence suggests that early childhood interventions are much more effective than remedies that attempt to compensate for early neglect later in life. Enriched pre-kindergarten programs available to disadvantaged children on a voluntary basis, coupled with home visitation programs, have a strong track record of promoting achievement for disadvantaged children, improving their labor market outcomes and reducing involvement with crime. Such programs are likely to generate substantial savings to society and to promote higher economic growth by improving the skills of the workforce.
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This working paper is among a series of papers funded by the Pew Charitable Trusts through its "Advancing Quality Pre-K for All" initiative. The paper finds that early childhood education appears to offer great potential returns and low risks, and should be included by state and local leaders as a component of their economic development policy toolkit. The paper encourages local development policy-makers to view early education as a development tool and appreciate its lasting benefits. Complete listing and access info »

This working paper is among a series of papers funded by the Pew Charitable Trusts through its "Advancing Quality Pre-K for All" initiative. The paper proposes that future preschool valuations devote appropriate attention to the related potential long-term social and economic benefits by utilizing a more comprehensive analytical framework. Such an approach would provide a clearer picture of the long-term social and economic benefits of early education that can help facilitate smart, targeted investments in preschool. The framework for evaluating investments in early childhood education should include the human capital benefits accruing directly to individuals, and the additional benefits these investments provide to families, communities, and society at large. Using a broad analytical framework to value prekindergarten enumerates the different ways that individual and societal benefits may be assessed, and can be benchmarked against existing cost-benefit studies on early education. Though current cost-benefit analyses are a necessary starting point for evaluating early education programs, some of the possible longer-run benefits that are more difficult to quantify are excluded by the typical cost-benefit analysis. Without a comprehensive look at the benefits of early education, its value will remain underestimated. Complete listing and access info »