Short-Term Achievements and Long-Term Problems

It is a great pleasure to appear again before this committee. The committee, has long advocated and worked for a more responsible budget position. The Chairman has co-sponsored an excellent proposal for tax reform that would strengthen the economy and raise standards of living permanently by encouraging saving and investment. The focus of that reform is long-term. I believe that is the proper focus and, as I will comment presently, if we are going to solve our major economic problems, we must focus on the long-term. Currently the economy enjoys robust growth with low inflation. Growth of employment is strong. Productivity has increased. The budget deficit has fallen.