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- W2299684549 abstract "In evaluating proposals to spur growth, it is important to distinguish between the short run and the long run. In the short run, a key economic difficulty is that the nation is not fully using the capacity it has available to produce goods and services. Given unused capacity, the crucial step to higher economic growth in the short run is expanded aggregate demand for the goods and services that firms could produce today. In other words, higher spending would encourage firms to more fully use available resources. In the long run, the key to economic growth is to expand the capacity of the nation to produce goods and services. The challenge is therefore much different: rather than ensuring that we are using all the capacity we have, which is a short-run issue, the long-run challenge is to boost the growth rate of that capacity over time. A primary determinant of how quickly that capacity increases is our nation's saving rate. The single most important step that policy-makers could take to raise national saving is to restore long-term fiscal discipline to the Federal budget. The different needs for the short run and the long run complicate the challenges facing policy-makers, since the appropriate policies for the short run may be exactly the opposite of the appropriate policies for the long run. [© Brookings Institution]" @default.
- W2299684549 created "2016-06-24" @default.
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- W2299684549 date "2003-02-11" @default.
- W2299684549 modified "2023-09-23" @default.
- W2299684549 title "Testimony on Proposals for Economic Growth and Job Creation" @default.
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