The Hamilton Project was co-founded and directed by Peter Orszag in 2005, while he was working at the Brookings Institution. The project was named after Alexander Hamilton, who was the United States' first treasury secretary. The Hamilton Project seeks to advance America's promise of opportunity, prosperity, and growth. The project's economic strategy reflects a judgment that long term prosperity is best achieved by fostering economic growth and broad participation in that growth, according to brookings.edu. The Hamilton Project strives to enhance individual economic security by embracing a role for effective government in making needed public investments.
Orszag believes the nation's low saving rate, real income stagnation, and increased income risk for most families represent the most pressing economic problems that face the country today. The low saving rate, which is tied to the Federal budget deficit, allows for massive borrowing from abroad. Stagnant income and increased income risk for middle and low income families could significantly reduce growth.
Orszag and the Hamilton Project believe that sustainable prosperity can be encouraged by economic growth; however Orszag says growth can only be achieved when individuals feel economically secure. Part of the Hamilton's Project research is centered on how to activate these ideas in a way that would be effective in our technology dependent economy today.
Tax cuts increase government borrowing and reduce national saving argues Orszag; they also widen income inequality, ultimately reducing income for most middle class and low income families. Others may argue that tax cuts are worth bearing because they stimulate economic growth; however they have at best, had a modest and short term positive effect on economic growth over the long run. Therefore Orszag says tax cuts increase national government debt, reduce saving, increase income volatility, and reduce incomes for families in the long term, as well as impair economic growth.
Orszag says a better economic approach to promoting economic growth is to increase national saving and to make investments in education, research, and economic security. This approach is more likely to be effective at building growth as well as resulting in broad-based participation in that growth. This is the basis of the Hamilton Project says Orszag.
The ability of the United States to reach these goals is realistic; however it would require officials and citizens to adhere to the recommendations put forth by the Hamilton Project. The research conducted by these members, including that of Peter Orszag, will help direct the policies that should be implemented in order to obtain long term financial success. These recommendations for a better economy are based upon reliable and sustainable policies.
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