The American Economic Crisis: Where Do We Go From Here? Jeffrey D. Sachs Student Lecture Columbia University November 23, 2010

Unemployment Rate, October 2008, Seasonally Adjusted

Poverty Rate in OECD Countries Note: Poverty Rate defined as proportion of households below half of median income

Ratio of CEO Compensation to Average Production Worker Pay

Top Marginal Tax Rate

Figure VI.1 Wall Street Bonuses During

Public Social Expenditure as Share of GDP

Includes all discretionary programs in the following areas: Agriculture, Commerce, Education, Energy, Housing, Justice, Labor. State, International Development, Science and Technology, Space, Climate Policy, Infrastructure Budget Proposals for

The key implication is that US systematically under-provides key public goods, including: Income support for the poor Education Public health Sustainable energy Infrastructure Civilian R&D Overseas Development Assistance The result, if continued, is a long slide to mediocrity, indebtedness, and increased social division.

The Reform Agenda Breaking the Low-Skill Trap Financing Higher Education Investing in Sustainable Infrastructure Cutting Military Spending and End the Occupations Raising Taxes on the Rich Public Campaign Financing End Corporate Abuse of Politics: lobbying, disinformation, campaign financing, revolving door employment Restore Social Ethics