In Peter R. Orzag�s �Promoting Fiscal Discipline and Broad-Based Economic Growth� he went into great detail explain the economic problems facing the country. The main issue in the paper is the problem with the lack of economic growth we have seen and will continue to see. The main driving forces behind the lack of growth are the nation�s low saving rate and the combination of real income stagnation and increased income risks for most families. Both of these forces are directly related to economic growth and the Federal Budget. The extremely low national savings rate in turn increases the already massive federal budget deficit. Due to the lack of savings, the government ultimately will have to borrow from foreign investors. The stagnant income for families prevents them from ever increasing their spending habits in the future. As we learned in class, consumer spending is directly tied to the Gross Domestic Product (GDP). The GDP is a good indicator of how well the economy is doing. GDP is the sum of consumer expenditure, government spending, and Investment, therefore there ca....

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