U.S. policymakers, business owners, and workers are facing some of the most challenging economic conditions in decades. A recession marked by job losses, tightening credit conditions, historic home foreclosure rates, and business closures has generated profound anxiety for American workers, and serious challenges for local, state, and federal officials working to stave off budget cuts and mitigate job losses and business closures.

As policymakers look for innovative ways to help communities and stimulate the economy, a white paper commissioned by the Forum proposes "structural stimulus." That is, new government programs that will not just temporarily boost income or demand, but rather will also address long-standing structural deficiencies in the U.S. economy that impede long-run economic growth. These programs are designed to help American communities prosper from the global economy, and adjust and adapt when challenges and struggles arise.

This research paper is the third in a series sponsored by the Forum that offer innovative policy proposals to help American workers prepare for, adjust to, and benefit from the 21st century global economy.