As Weekend 2 started, the Jurors in the Debt Committee fact-checked key statements from Weekend 1. They received a written response to their questions (e.g. “Why is debt owed to the government not counted in the national debt?”) from Tom Stinson and Mike Ferguson (official state economists for, respectively, Minnesota and Idaho).
The Debt Committee also received in-person briefings from, Dr. Paul Anton and Daniel McLaughlin. Dr. Anton provided information on what economic studies have said on questions such as: how much would a reduction in tax rates grow the economy? or how much revenue would be generated by a “Buffet Rule” on taxes of wealthy individuals?
They used this additional information to evaluate and amend three basic position statements on the federal government’s debt:
- Growth through Immediate Debt Reduction
- Long Term Approach Through Small Changes, aka Slow and Steady Wins the Race
- Invest First, Reduce Debt Later, aka Invest Now to Grow the Economy
The Debt Committee works out one of three main positions on the debt: the yellow paper is the summary statement; the pink papers are proposed actions; and green and blue papers hold justifications for the position that two-thirds of the committee can support.
The Economic Issues Committee dug deep into three topics, based on their priorities from Weekend One:
Steve Kelley provided background on the Federal Budget; Dr. Maria Hanratty presented on Social Insurance Programs (e.g., Social Security, Medicare); and Dr. Ryan Allen gave a summary of role of the housing bubble in the recent economic turmoil. (credentials of presenters available in Weekend Two Preview).
Dr. Allen stressed that a foreclosure crisis that started with “sub-prime” mortgages has spread into mortgage types that were considered more stable, and stated that an economic recovery is the best way to reduce foreclosure rates.
The Committee continues to consider different policies that can make the biggest improvement in the U.S. economy, which they’ll choose later this Weekend.
Both Committees prepared to talk with representatives of Demos, the American Enterprise Institute and the Committee for a Responsible Federal Budget on Day 5.