The Niskanen Center believes that maintaining a dynamic, technologically-advanced, and globally integrated economy requires two mutually reinforcing macroeconomic policy objectives. The first is a fiscal policy that acknowledges the role of the government social safety net in buffering the effects of creative destruction, seeks to provide those services in an efficient, market-oriented fashion, and pays for those services with a simple and transparent tax system. The second is an independent monetary authority that assumes primary responsibility for stabilizing the economy and aggressively pursues the goal of maximum employment consistent with long-run price stability.
To these ends, we educate policy actors about the ongoing effects of monetary policy and the advantages and disadvantages of policy recommendations by the Federal Reserve Regional Presidents and Governors and encourage Republicans to support the Federal Reserve’s dual mandate and confirm pro-growth candidates to the Board of Governors.
We also promote tax simplification; identify and fight the creep of specialized deductions; conduct, synthesize and curate research on the effect of globalization and technological trends on the US economy; and encourage growth advocates to focus more attention on cutting harmful regulations and increasing program efficiency than attempts to radically pare down social spending.
The independent Congressional Budget Office recently released a report offering 121 options for reducing spending or increasing revenues. It’s a cornucopia of fiscal responsibility. Whether your goal is reducing unsustainable deficits, strengthening existing social programs, or saving the planet, there’s something for everyone.