The Federal Government and Increasing Individual Spending

Alice Rivlin discussed the state of the U.S. economy at a recent event, arguing that a main reason businesses are hesitant to increase investment is a lack of demand for new products rather than a need for greater clarity on regulations and future taxes.

She also examined President Obama’s job plan, saying that federal policies with the goal of increasing individual spending and economic growth by ensuring people take home more money may not work, as people who overspent when the economy was stronger may instead choose to pay down debts.