Treasury Secretary Highlights Importance of Investment in R&D

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Publication date: 
19 January 2011

Chinese  President Hu Jintao is making a state visit to Washington this week, during  which there will be considerable discussion about the economic relationship between  China and the United States.  Last week,  Treasury Secretary Timothy Geithner discussed a number of issues that will be  on the agenda, and also spoke about what the U.S. must do to be more  competitive.  Selections from Geithner’s January  12 address  follow:

“In  any discussion of China, I think it is important for Americans to understand  the solutions to our challenges in the United States rest first and foremost in  the policies of Washington, not of Beijing. 

Fundamentally,  how many jobs and how much wealth we create will be the result of the choices  we make in the United States – not the choices of others.

“In  our efforts to rebuild and put Americans back to work, we have to make sure we  are making the investments and reform that will be essential to our capacity to  grow in the future. 

“As  countries like China, India, Brazil and other emerging economies grow and  expand, we want the American economy, American workers, and American companies  to play a major role in – and gain substantial benefits from – that  growth. 

We  want to see a substantial part of that growing demand outside of the United  States met by goods and services that are created and produced in the United  States, and fueled by investment in the United States.       

“If  we are successful in doing that, we will be stronger as a nation.

“But  to be successful in meeting that challenge, there are things we must do.

“We  must invest more in research and development.

“We  must invest more in educational reforms.

“We  must create stronger incentives for investment in the United States, by both  American and foreign companies.  

“We  must be more forceful and effective in promoting American exports.

“And  we must restore fiscal responsibility.   This will require the government to spend less and spend more wisely, so  that we can afford to make the investments that are critical to future growth.  And it will require tax reform that produces  a system that is more simple and more fair, that encourages growth and  investment, and that will help restore fiscal sustainability.

“These  are our challenges.  And they are not  just an economic imperative, they are a national security imperative.  Our strength as a nation depends on the  ability of our political system to move quickly enough to put in place  solutions to our long-term problems.  

“Our  great strengths as a country have been in our openness to ideas and talent, our  capacity to innovate, our excellence in higher education, a willingness to  invest public resources strategically in scientific research and discovery, and  the political will to confront challenges with wisdom and force.”





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