Economic Report of the President

TABLE 1.—Changes in employment in major industrial countries, 1970-80[Percent change]CountryTo 1980 first quarter fromGermanyFranceUnited Kingdom.JapanUnited StatesNote.—Data are for civilian employment.Sources: Department of Labor (Bureau of Labor Statistics) and Organization for Economic Cooperation and Development.Some of the rapid job creation was associated with the low rate ofproductivity growth, but production also increased rapidly. As shownin Table 2, the growth of industrial production in the United States,both during the decade as a whole and in the last years of thedecade, compared favorably with that of other large industrial countries.TABLE 2.—Changes in industrial production in major industrial countries, 1970-80[Percent change]CountryTo 1980 first quarter fromGermany.FranceUnited Kingdom.Japan....United States.Sources: Board of Governors of the Federal Reserve System and Organization for Economic Cooperation and Development.Whatever the problems of the American economy, they do notarise from an inability to generate large increases in jobs and production.But if the challenges raised by chronic high inflation, energyand environmental problems, ebbing productivity growth, and structuralreadjustment are not faced, the potential for further growth willnot be realized.In recent years the United States has successfully begun to tacklesome of its most difficult problems. After years of inaction followedby several years of vigorous debate, and with some painful sacrifices,we have put into place the major elements of an energy programwhich is already paying dividends in the form of greater energy conservationand improved supply prospects. After decades in which thedocumented evidence about the greater productivity and efficiency tobe gained from economic deregulation had been ignored, this Nationfinally acted during the past 4 years to deregulate its airline, trucking,and railroad industries, and major elements of its financial industry.And during the 1980 recession the executive branch and the Congressshowed their willingness to maintain the restraint and discipline30