Three Ways to Spark Economic Growth
January 7, 2015
While the American economy grew at its highest rate in 11 years in the third quarter of 2014, much can still be done to improve economic growth. What can the new Congress do to speed up the economy? Jared Meyer of Economics21 offers three main suggestions.
The first step? Repealing the employer mandate. According to Meyer, the mandate would only increase the number of insured Americans by a paltry 0.0007 percent. At the same time, it incentivizes employers to reduce the size of their full-time workforce or expand their part-time offerings.
Second on the list is repealing the ban on crude oil exports. Exports are only allowed with government permission, which is given rarely. What would lifting the ban do? Increase crude oil production. Mark Mills of the Manhattan Institute wrote about this issue in a study last year, noting that every oil-field job creates four to five related jobs in other industries. Stimulating production, he says, would also impact the job market.
Lastly, Meyer suggests allowing interest rates -- which have sat close to zero since 2008 -- to rise. Keeping rates low while the economy is growing, he says, threatens to cause inflation.
Source: Jared Meyer, "Three Economic Priorities for 2015," Economics21, December 31, 2014.
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