The massive government spending during World War II did not lead to an economic boom. Economic historians have known for some time that the war cut personal consumption as Americans saved their paychecks in record amounts.

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 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.

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

A rise in U.S. household savings is a healthy long-run development in that it provides a basis for reducing the large U.S. external imbalance and for increasing domestic investment.

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

Will all federal regulations soon pass a benefit-cost test? If the Office of Management and Budget's 2003 report is any indicator, the answer may be yes.

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.