| Problem | Components |
|---|---|
| Policy issue area: | Economics |
| Policy issue: | Productivity |
| Description: | High cost of production, so that foreign competition cannot be met. |
| Symptoms: | Substantial increases in imports; decline in the industrial sector (smokestack industries); widespread unemployment (20% decline in manufacturing jobs since 1979); unfavorable trade deficits. |
| Causes: | Inadequate management; excessive wage demands; industrial policies of trading partners; lack of new economic development (high-tech industries, etc.); lack of a national economic policy. |
| Cost of problem: | - |
| Solution | Components |
| Resources: | Business; industry; management; workers; science (R&D). |
| Goal: | Pursue an industrial policy that stimulates economic growth to result in an annual increase of per capita real income by 3%. |
| Program area: | Economic development |
| Program-remedy: | 1. Industrial renewal policy -- Industrial Modernization Agreements, supported by
a National Investment Program to channel pension fund assets 2. Restoring incentives for business to invest in productivity 3. Programs for increased management-labor cooperation -- worker participation in decision making; Employee Stock Ownership Plans (ESOPs) 4. Management and employee bonuses tied to productivity 5. National program to stimulate technologically advanced, customized and flexible production. |
| Program-prevent: | 1. Strategic management 2. Human resources development through education system 3. Strengthened Job Training Partnership Act (JTPA) 4. More investment in scientific and engineering R&D 5. Fostering new high technology ventures by governmental coordination of industry and finance. |
| Cost of program: | - |
| Beneficiaries: | Business; management; workers; consumers. |