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House Republicans hosted a hearing Thursday to explore what policies lawmakers should be pursuing to encourage economic growth.

The economy has shown considerable improvement over the last year. It still faces lingering challenges from the last recession that could be hindering economic growth. The Economic Growth, Tax, and Capital Access Subcommittee hosted the hearing to examine what causes economic growth, and the limits that currently exist.

The recession was caused by the financial and subprime mortgage crisis of 2007. It was followed by an unusually prolonged economic recovery. Expert witnesses suggested a number of policy solutions that could help the economy finally see robust growth.

“Turning to present day trends, 2017 has seen a widespread but tempered increase in confidence among small business owners regarding the economy and overall trends in business investment,” testified Andrew Sherman, a partner at Seyfarth Shaw. “Business owner optimism has increased in part due to promises of tax reform, regulatory reform, and the strength of the capital markets.”

Sherman has written books and held lectures on entrepreneurship. He adds lawmakers should reduce regulatory requirements so banking institutions can more easily provide loans to small businesses. He also suggests reforms should reduce regulations and address problems with labor productivity.

Former President Barack Obama oversaw the recovery throughout his time in office. He was able to eventually see steady economic gains in his final years. President Donald Trump has focused his presidency thus far on resolving the economic issues still hindering the country.

“Over the last 8 years, economic growth has been stagnate,” Heritage Foundation distinguished fellow Stephen Moore testified. “Wages are, for the most part, flat, and many on the left believe our days of sustainable three percent growth are over.”

The Gross Domestic Product (GDP) is the primary indicator for measuring economic growth. The GDP tracks the total dollar value of all goods and services produced over a specific time period. It jumped last year to 3.5 percent after being stuck around one percent.

“I believe that the hope of human achievement and policies that allow for us to produce and grow, free of government intervention will break all expert predictions,” Moore said. “This is all possible if Congress enacts policies that reduce regulation, lower taxes, and empower small businesses.”

Not everyone is convinced slashing taxes and regulations is the right approach. Center on Budget and Policy Priorities economist Chad Stone urged a more deliberate approach since both can be beneficial. Safety regulations, for instance, may impose additional costs on businesses, but they also improve workplace conditions and safety.

“Health, safety, and environmental regulations can impose costs on businesses that may slow measured GDP growth,” Stone said. “But any such costs must be compared with the benefits of better health, safer workplaces, and a cleaner environment that may not be captured in GDP.”

Stone adds the positive impact of tax cuts is often exaggerated in relation to economic growth. Republican leadership has made tax reform a priority. Trump introduced a tax plan Wednesday that focused on lowering rates and simplifying the system.

The hearing also focused on how small businesses help further economic growth. Sherman notes that small businesses have been reporting a decline in economic uncertainty in recent months but that they still are having trouble accessing affordable financing.

“We are all aware that small and emerging businesses are the backbone of our country and a significant engine for the creation of new jobs,” Sherman said. “Many small businesses are forecasting significant increases in revenue for 2017 and 2018.”

Stone counters that small businesses might not be as critical as some believe. He argues that the age of a business is a much more significant factor. He adds that small businesses aren’t necessarily a critical driver of growth, but rather startups and new businesses are.

“Research over the last several years has modified the longstanding claim that small businesses are the engine of job growth,” Stone said. “This research shows that the age of a business matters more than its size as a contributor to job growth, although new companies are typically small to start with.”

Sherman also urged lawmakers to look more closely at technological changes facing the economy. Businesses have been steadily adopting technology that allows them to replace labor with machines. Automation is nothing new, but improved technology and increased labor costs have threatened to displace many more workers in the years ahead.

The Congressional Budget Office (CBO) found in a recent budget outlook report that workers face slow wage and labor market growth over the next couple of decades. More people are also expected to dropout of the workforce. The outlook is based on current laws and could change as lawmakers enact reforms.

The Bureau of Economic Analysis (BEA) is scheduled to release its advanced estimate for GDP this year on Friday. Estimates are calculated on a quarterly basis throughout the year. The report is expected to paint a good picture of how the economy is doing under the new administration.

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Economist Stephen Moore detailed a dismal look at where the global economy stands during a panel discussion Wednesday.

Moore has written on economics for roughly three decades including as the chief economist at The Heritage Foundation. He warned during the panel discussion that ongoing slow economic growth is causing serious problems domestically and globally. Moore argued that things can turnaround through increased economic freedom.

“This has been the slowest recovery we’ve had from a recession since the Great Depression,” Moore stated. “In my opinion the business sector right now is in what I call a soft recession. These are dangerous times and the economy is way under performing.”

Heritage hosted the panel discussion to correspond with its new report on global economics. The report also advocates that policymakers start moving toward increased economic freedom.

Moore notes the economy grew by only one percent over the past six months. Additionally, businesses have been hesitant to grow and invest with current conditions. He asserts that taking a more free-market approach resulted in great prosperity from 1980 to 2005. But he believes those ideas are losing favor with many people.

“We saw half of American voters in the Democratic Party vote for a socialist,” Moore also noted. “That tells you a lot about the fact some of the ideas we’re talking about have lost favor. And its a distressing thing to see because as these ideas lose favor people will become poorer.”

President Barack Obama was elected into office during of a severe economic downturn now known as the Great Recession. Some economists have predicted the United States will continue its slow recovery for the next 25 years. Moore counters that its not too late for countries to bounce back through policy reform.

“In my opinion it wouldn’t be too hard to get the United States and these other countries to start growing again at a very rapid pace,” Moore noted. “We could grow at four percent for five years. Four percent for five years. That’s like adding another Texas onto the U.S. economy.”

The recession was sparked by the subprime mortgage crisis and the financial crisis of 2007. The president blamed the slow recovery on Republicans March 4 while praising the few successes on his agenda. Moore is confident that if the United States starts changing its policies, the rest of the world will follow.

“I do think if the United States starts getting these things right, they will spread like a virus around the world,” Moore said. “You’ll have another 25 year period of unbelievable prosperity.”

The president has often touted his economic recovery as a success because unemployment is around pre-recession levels. His analysis, however, overlooks that the labor force participation rate has been in a sharp decline since 2008.