A Six-Plank Platform to Save the Economy from Recession

Publication Date: September 1990

Publisher: Heritage Foundation (Washington, D.C.)

Author(s): Daniel J. Mitchell

Research Area: Economics

Keywords: Economy

Type: Report

Abstract:

The way to stop a recession or to reduce its severity is to return to policies that promote economic growth. America needs tax cuts, not tax increases. Rather than return to the fiscal policies of the 197Os, federal spending growth must be limited to 4 percent. Instead of punishing new investment, the tax code should reward expenditures on new plant and equipment. Similarly, the anti-savings bias in the tax code should be eliminated. Expensive new regulations need to be shelved in favor of legislation that strengthens American competitiveness.