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Representative David Schweikert - Vice Chairman

JEC Vice Chairman Schweikert Releases Republican Response to Economic Report of the President

JEC Vice Chairman Schweikert Releases Republican Response to Economic Report of the President

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WASHINGTON, D.C. — Today, Joint Economic Committee Vice Chairman David Schweikert released the Republican Response to the Council of Economic Advisers’ 2024 Economic Report of the President.

The Republican Response examines the Biden administration’s impractical, demand-side economic policies that have exacerbated the nation’s debt crisis and turbocharged inflation to a four-decade high. JEC Republicans also explore the nation’s rapidly changing demographics which have contributed to unsustainable debt levels that could have devastating consequences to the U.S. economy. Additionally, JEC Republicans estimate that obesity will result in $8.2 trillion-$9.1 trillion in excess medical expenditures over the next decade if left untreated. The Republican Response encourages lawmakers to adopt innovative policies to improve health outcomes and help mitigate the nation’s fiscal challenges.  

“America’s fiscal health is at a critical juncture,” said Vice Chairman Schweikert. “The challenge before us is neither Republican nor Democrat — it is our moral obligation to ensure American families aren’t left behind. Congress holds the keys to determine which path we choose. We can either behave like adults and choose the path of fiscal responsibility or continue our partisan gamesmanship that will put the American dream further out of reach for future generations.”

“It does not matter what party one belongs to, we should all want a healthier population, strong and secure social safety net programs, and a robust and flourishing economy,”continued Vice Chairman Schweikert. “Our time to act is now.”

Background:

The 2024 Republican Response delivers its findings and recommendations in five chapters.

  •  Chapter 1: Failures in Economic Policy
    • Reviews the nation’s fiscal problems and dissects the Biden administration’s demand-side policies which have propelled deficit growth and caused inflation to persist well past its peak in 2022.
  • Chapter 2: Demographics and the Deficit
    • Explores the rapidly changing demographics of the United States as more Americans retire and begin receiving Social Security and Medicare benefits.
    • Since 2021, the combined OASI and DI Trust Fund reserves have decreased because the benefits paid out exceed the income received from payroll taxes.
    • Aims to address the trust fund depletion by encouraging policies that address demographic trends, like removing barriers to family formation, rejuvenating prime-age labor force participation, and attracting high-skilled immigration to increase economic growth and put our retirement programs on a sustainable fiscal path. 
  • Chapter 3: Tax Increases Harm Growth
    • Explains that President Biden’s tax proposals would be detrimental to the U.S. economy and constitute a harmful strategy for balancing the long-run Federal budget.
    • Presents compelling arguments against the Left’s “tax the rich” approach by proving that such large tax increases would severely hamper economic growth and worsen America’s fiscal crisis while raising only a fraction of the projected tax receipts, failing to restrain the growth of the public debt.
  • Chapter 4: Reaching Fiscal Solutions Through Healthcare Innovation
    • Builds off JEC Republicans’ 2023 Response which found that rapidly increasing obesity prevalence in the U.S. is a major drag on the U.S. economy, and fiscal policy must address this reality.
    • Obesity will result in up to $9.1 trillion in excess medical expenditures and cause the Federal government to spend $4.1 trillion over the next 10 years.
    • Obesity-related labor productivity and supply reductions will cost up to $2.8 trillion and $11.9 trillion, respectively.
  • Chapter 5: The Role of Artificial Intelligence in Governance
    • Analyzes the potential benefits to governance, economic growth, and our fiscal situation that one of the most revolutionary technological innovations of our generation – AI – can have. 
    • AI increases labor productivity, resulting in greater output, incomes, purchasing power, and economic growth.
    • AI could help government become more efficient and responsive by reducing administrative burdens and improving public services.
    • AI can further improve governance by reforming complex, duplicative, and conflicting regulations.

The full 2024 Republican Response can be found here.

A one pager can be found here.

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