The Senate Republican Policy Committee focus on what Works, the way forward to fix our economy

The Republican Policy Committee discussed the outlook of America’s economy and examined testimonies from Douglas Holtz-Eakin, President of DHE Consulting LLC, Alan Viard, Resident Scholar at the American Enterprise Institute and Kevin Hasset, director of economic policy studies.

“The difficulties facing the U.S economy stem from three different forces: 1, dramatic and financial crises 2, a severe recession 3, a dramatic need to build household wealth.” Holtz-Eakin stated.

Senator John McCain stated that the main cause for the financial crisis is the situation due to the housing market. America needs to stabilize home values to be able to get the economy back on the right track.

Fiscal stimulus was a term that Viard used when describing a future economic outlook. Fiscal stimulus refers to tax and spending policies that increase public and private spending at a given level of the interest rate. Viard emphasized the importance of timing, when using fiscal stimulus.

“Timing incentives can be adopted to reward spending during the duration of the recession. A prime example is a tax incentive that applies only to investment during a specified time period.” Viard said.

Another resolution that was brought up by Hasset was a permanent tax cut for low income employees. He explained that this could be one of many long term solutions that will help America’s economy.