This edition of OECD's periodic survey of the US economy assesses recent economic develoments and examines challenges the US faces including employment limits that are slowing economic growth, fiscal sustainability, household debt, improving primary and secondary education, and financing higher education. This book includes StatLinks, URLs under tables and graphs linking to Excel® spreadsheet files containing the underlying data. Table of contents Executive Summary Assessment and Recommendations Chapter 1. Challenges Facing the US Economy -Longer-Term Economic Performance -The Economic Situation -The Macroeconomic Policy Stance -Near Term Prospects and Risks -Longer-Term Challenges -Annex: Progress in Structural Reform Chapter 2. Potential Employment -Employment Limits are Slowing Economic Growth -Labour Force Participation -Policies to Increase the Participation Rate -Disability Benefits -The Minimum Wage -Annex: The OECD's Decomposition of Potential Output Chapter 3. Ensuring Fiscal Sustainability -The Federal Budget Outlook -Budget Rules -Entitlement Programmes -Taxation -Concluding Remarks Chapter 4. Household Debt -Household Debt and the Housing Market -Vulnerability of Indebted Households -The Implication for US Policies -Conclusion Chapter 5. Improving Primary and Secondary Education -Dimensions of the Problem -Why do US School Students Perform Below the International Average? -Centralisation and Academic Schooling Standards -Past Attempts to Improve Schooling Performance Fell Short -A Stronger Federal Role to Raise Academic Standards -Early Signs of Progress -The Urgent Need for Challenging Standards -Conclusion Chapter 6. Financing Higher Education -Background -More Needs to be Done -Loans -Pell Grants -Tax Relief -State Provision Annex: Implementation of Income Contingent Loans