Faster growth and greater fiscal responsibility are possible

Abstract

The growth in spending on entitlement programs has left the United States in a fiscally untenable position. Putting the country on more stable fiscal footing requires a two-pronged approach designed to constrain the growth in spending and to spur economic growth. There are ample opportunities to reduce spending while maintaining or improving current levels of government service by implementing progressive entitlement reform reducing regulatory burdens or improving efficiency in healthcare provision through market-based reform. Achieving higher economic growth is similarly possible, but will require real tax reform geared toward unlocking capital for investment, as well as immigration reform and greater support for work for low-income Americans.