Testifying before the U.S. House Subcommittee on the Federal Workforce, Postal Service and the District of Columbia, Alice M. Rivlin, Director of Greater Washington Research at Brookings, asserted that the District of Columbia government should have greater autonomy over its own budget. Once the District government finalizes its budget spending out of its own source revenues, Dr. Rivlin states that it should not be altered or delayed by Congress.
Speaking before the Senate Budget Committee, Senior Fellow William Galston discussed how the Untied States’ current fiscal course is unsustainable. The level of deficits, debt, and borrowing from abroad projected for the next decade threatens not only our economic prosperity, but also our currency, global leadership, and national independence, he asserted. Galston recommended that an independent, bi-partisan commission be created to address the challenge of developing a sustainable fiscal policy.
How long will the economic recovery take? Karen Dynan testified before the Joint Economic Committee that there is a great deal of uncertainty about the strength and speed of the nation’s recovery, with gradual expansion being the most likely economic scenario. She says that consumer spending is likely to grow modestly over the next few years because of weak income growth, higher saving and lower borrowing. Policymakers have options to bolster the recovery but they should be mindful of the long-run costs, particularly in terms of the budget deficit, she says.
In testimony before the Senate Caucus on International Narcotics Control, Vanda Felbab-Brown discussed how narcotics production influences the security, political, and economic developments in Afghanistan. Felbab-Brown also examined the effectiveness of policies to mitigate these effects and offered recommendations for the future of U.S. policy on the issue.
In testimony before the House Subcommittee on National Security and Foreign Affairs, Vanda-Felbab Brown discussed illicit economies, organized crime, and their impact on U.S. and global security. Felbab-Brown concluded by offering recommendations for counternarcotics strategies as well as other measures local and foreign governments can take to address the issues.
Martin Baily testified before the Senate Banking Committee on the creation of a single micro prudential regulator, combining the regulatory and supervisory functions now carried out by the Fed, the OCC, the OTS, the SEC and the FDIC. He calls attention to the Australia model as a good positive example where a single prudential regulator has worked well.
During testimony before the U.S. Senate Committee on Finance, Gary Burtless stated that the basic system of financing unemployment insurance is scandalously out of date and recommended that Congress consider a basic overhaul of the system.
Suzanne Maloney testified before the Senate Committee on Banking, Housing, and Urban Affairs on recent developments in Iran and the possibility of new sanctions. Maloney noted that while sanctions may be the only effective means of persuading Iran to cooperate, the willingness of the international community is limited and Iran is somewhat insulated because of its already poor economy and extensive petroleum exports.