Alan D. Viard, a resident scholar at AEI, reviews the budget outlook, the need for tax reform and the benefits of moving to a progressive consumption tax. He also discusses his forthcoming book, Progressive Consumption Taxation: The X Tax Revisited, which he coauthored with Robert Carroll of Ernst & Young. The book will be published by AEI Press in the Spring.

The story of "Good Neighbor Sam" represents America's fiscal plight, which is in a much more dire situation.

The current economic environment of low—virtually zero—interest rates has hit savers hard, but abruptly raising interest rates could harm economic growth and the housing market. Until the economy stabilizes and the Fed begins raising interest rates again, savers have few options: they can adjust their lifestyles, dip into their savings, or take on riskier investments such as gold and stocks.

So the stimulus--the so-called American Recovery and Reinvestment Act of 2009 or ARRA--is starting to wind down. What are the results?

A look at what happens when health spending rises much faster than either national income or household wealth.

The U.S. economy has grown considerably over the past three decades. However, there is a prevailing sentiment that the middle class and the poor have been left behind. Our results show evidence of considerable improvement in material well-being for both the middle class and the poor over the past three decades.

Desmond Lachman's response to NationalJournal.com's "Economy Experts" blog on the implications of low saving on economic growth.

Studies of U.S. wage and income inequality since 1980 have engendered the common wisdom that the rich are getting richer and the poor are getting poorer. But is it really that simple?