Lessons from Japan for America's Budget Warriors

With Wednesday’s Federal Open Market Committee (FOMC) statement on the horizon, and Japanese Prime Minister Shinzo Abe’s pushing to print more money and enact an ambitious stimulus program, American Enterprise Institute (AEI) economist John Makin has released his latest economic outlook which examines lessons from Japan’s past for current American policymakers.

Is the United States on the precipice of a lost decade?

Makin argues that Japan’s experience with debt, deficits, and deflation can teach the United States important lessons: use monetary policy to avoid deflation, aim for gradual deficit reduction, close tax loopholes to lower the marginal tax rate, and reduce the budget deficit.

What should US policy makers do?
1.    Don’t obsess about deficits (as Makin has explained they are, unfortunately, sustainable)
2.    Enact tax and entitlement reforms now
3.    Cut spending later

Click here to read the full report.

Contact [email protected] (202.862.5829) to set up an interview. 

Also Visit
AEIdeas Blog The American Magazine
About the Author

 

John H.
Makin

What's new on AEI

Retirement crisis is hyped
image Why the Foley beheading will force Obama to continue US airstrikes
image How the New York Times misguides their readers on Internet regulation
image US still has time to stake out a position of strength on Ukraine
AEI on Facebook
Events Calendar
  • 25
    MON
  • 26
    TUE
  • 27
    WED
  • 28
    THU
  • 29
    FRI
Wednesday, August 27, 2014 | 3:00 p.m. – 4:15 p.m.
Teacher quality 2.0: Toward a new era in education reform

Please join AEI for a conversation among several contributors to the new volume “Teacher Quality 2.0: Toward a New Era in Education Reform” (Harvard Education Press, 2014), edited by Frederick M. Hess and Michael Q. McShane. Panelists will discuss the intersection of teacher-quality policy and innovation, exploring roadblocks and possibilities.

No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled today.
No events scheduled this day.