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Detailed text transcripts for TV channel - MSNBC - 20110805:19:50:00

joining me now is m.i.t. economist michael green stone director of the hamilton projects and author of "the report." thank you for being here. >> here. >> thanks, ezra. >> the first question, the obvious one. what happened? do we get dumber? where did our innovation go? >> innovation, you were saying, it's a tricky thing. there's not a magic formula, but rather it's it comes out of an ecosystem or a series of small choices that add up to something big. and i think what happened is that beginning sometime in the 1970s, we stopped being as aggressive in making those investments and kind of putting together the lattice work that leads to innovation and ultimately determines or living standards. >> so you talked about that lattice work. the stereotype of innovation, a lone genius, addict. the brain in larry page in a garage inventing google. that implies no role for society much less the government. we wait and hope these guys think their great thoughts.

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Detailed text transcripts for TV channel - MSNBC - 20110805:19:53:00

the key thing that a forward looking american feel is going to do, they will continue to pay the mortgage, continue to pay the utility bill, might eat out a little less but they're not going to stop putting money into the fund for their child's education. therapy not going to stop putting money into 401(k)s and that analogy applies to the federal budget. we have to continue to invest in the future in a way that our parents did for us. >> michael greenstone, thank you very much. >> thank you. and we will be right back. [ male announcer ] at e-trade, investing means taking action with professional-grade research. and some of the most powerful, yet easy to use trading tools on the planet.

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