The Dole-Kemp economic plan is designed to increase economic growth by cutting taxes, balancing the budget, reducing regulation and litigation, and providing incentives for education and training.
It's paid for by controlling the rate of growth in federal spending. Spending increases about 14 percent over six years--but taxes, after the tax cuts are taken into account, increase 23 percent. The budget balances in 2002.
It's needed because the rate of growth of our economy has been anemic-- only 2.4 percent a year and slowing. That's why wages have stagnated and real household income is less than it was at the end of the Reagan years. The U.S. economy can do better--we should be able to double real output in a generation, not the current 55 years. Higher growth is the foundation that makes the American dream a reality.
Annelise Anderson
Senior Research Fellow
The Hoover Institution
Economic Adviser, Dole-Kemp '96
andrsn@andrsn.stanford.edu