David Schweikert
Chairman of the Joint Economic CommitteeRepresentative of Arizona's First Congressional District
Read the full Republican section of the 2025 Joint Economic Report >
The U.S. Congress Joint Economic Committee plays a pivotal role each year in responding to the Economic Report of the President. Many recent policies have not only failed to alleviate but exacerbated the problems we face. A different approach is needed. Instead of government directing economic activity and increasing spending, we should look to the private sector’s innovations for solutions. Instead of policies that protect incumbents, we should adapt to innovations that would improve lives. The Republican section of the 2025 Joint Economic Report delivers its findings and recommendations in five chapters:
Chapter 1, “The U.S. Must Address its Growing Spending,” illustrates the urgency of confronting the nation’s ballooning fiscal shortfall. At the core of the problem are rising costs in programs most directly related to the country’s health and demographic landscape. [...] With modest reforms, a modernizing of the regulatory landscape in healthcare, and a data-driven overhaul to root out waste, fraud, and abuse within the government, we can partially offset these demographic headwinds, reduce inefficiency, and do more with fewer taxpayer dollars. While some solutions like closing tax loopholes may unlock more revenue, reducing outlays and improving efficiency remain the clearest paths to fiscal solvency.
Chapter 2, “The Arrogance of Industrial Policy,” examines the return of subsidies, tax incentives, and trade barriers to policy discourse. Using such industrial policy to command outcomes in the economy assumes that “government knows best.” This arrogance is harmful to the efficient operation of our economy. Such an approach not only distorts the market but also requires massive amounts of spending by the federal government, with some recent legislation carrying a price tag of more than $1 trillion over ten years. Redistributing dollars from innovative firms to the most politically connected is no way to lead the nation through the 21st century. Instead, we must examine and eliminate the current barriers to production and stop wasteful transfers that create worse outcomes.
Chapter 3, “The Threat of Rising Interest Rate Sensitivity,” presents the grave challenges posed by rising interest costs. It reviews the recent history of movements in interest rates, the state of American monetary policy, and the implications for fiscal health. Exorbitant interest costs are the result of a large debt profile, in addition to rising interest rates. Because of the level of our debt, even small increases in interest rates have a significant impact on deficits. Only by correcting course now can we avoid a catastrophic debt spiral.
Chapter 4, “An Update on Obesity Trends,” builds on estimates in the 2024 Response that obesity will result in $8.2 to $9.1 trillion in excess medical expenditures by 2034. The Chapter provides an update to last year’s findings with new data and examines the impact of the rise of anti-obesity medications on trends in obesity. Beyond the benefits of curbing immense federal spending, reducing obesity would improve the health and well-being of Americans.
Chapter 5, “The Economics of Skilled and Unskilled Migration,” analyzes the disparate economic impacts of low- and high-skilled immigration. The primary driver of our debt is demographics. A critical shortage of projected workers relative to retirees complicates the long-run math. [...] To ensure America remains a global leader in an era of fierce international competition for talent, and to address its dire fiscal outlook, immigration policy must prioritize those who will offer the greatest economic benefits.
