Morning Brief: Hopes for U.S. Manufacturing Resurgence

U.S. manufacturing employment has risen faster than in any other leading developed economy since the start of the recovery, feeding hopes the country is beginning a sustained manufacturing resurgence (FT). At just under twelve million workers, employment levels are still down roughly two million since before the recession. But Adam Davidson, reporting for the Atlantic, shows why the increased automation of U.S. manufacturing makes it unlikely that the industry will ever reach its former employment levels, especially for unskilled workers.

Debt and Deficits

Congress Set to Clash over White House Budget

President Obama’s 2013 budget, expected in early February, is likely to be used by both Republicans and Democrats for political gains in a highly contested election year. Republicans are determined to highlight the Obama administration’s contributions to the national debt (Reuters), while Democrats are likely to blame the Bush administration’s economic policies for rising deficits.

Debt and deficits. America's debt is rising at an unprecedented rate and the response will require tackling some of the thorniest issues in U.S. politics --taxes and entitlement spending. Leading experts assess the challenges in reducing U.S. debt.

Education and Human Capital

Budget Cuts at Public Research Universities

A report issued by the National Science Foundation indicates that states have slashed funding for public research universities by 20 percent from 2002-2010. The report, “Science and Engineering Indicators: 2012,” elaborates on the scientific and technological advances being made by students in China and India, and stresses the need for development in these areas in the American education system.

Innovation and the American Workforce

In this collection of papers, several scholars from the Brookings Institution discuss the problem of lingering U.S. unemployment and the growing mismatch between the skills the workforce needs and the skills it currently has.

Education and human capital. An education system beset by falling student performance and a flawed immigration system threaten U.S. capacity to develop a competitive workforce. Experts spell out ways of improving education and immigration policies.

Corporate Regulation and Taxation

President's Jobs Council Calls for Corporate Tax Overhaul

The Council on Jobs and Competitiveness called for a major corporate tax overhaul, increased domestic drilling, and a new set of regulatory reforms for the coming year (Reuters).

Senator Rob Portman (R-OH) and Stone Point Capital Chairman Stephen Friedman discuss rebooting the American economy and global economic challenges in this CFR meeting.

Corporate regulation and taxation. Regulatory burdens, offshore employment, and tax-shelter abuses have fed debate over the scope of rules for U.S.-based businesses. Top economists and business experts offer solutions for addressing corporate taxes.

The Renewing America morning brief presents daily news and analysis on the major domestic challenges facing the United States that have significant consequences for national security and foreign policy. Topics include the debt and deficit, infrastructure, education, innovation, trade, and corporate regulation and