| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy

RSS FEED


How to use our RSS feed

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News

Newspapers

Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News

 

Feedback

 

Content Management by interactivetools.com.

News : International Last Updated: May 26, 2010 - 9:05:14 AM


Obama administration is seeking mini-stimulus of $200bn to help the economy "out of a very deep valley"
By Finfacts Team
May 25, 2010 - 7:06:12 AM

Email this article
 Printer friendly page

A White House valet brings National Economic Council Director Larry Summers a birthday cake in the Oval Office, November 30, 2009. In 1983, when economist Larry Summers was 28, he became one of the youngest tenured professors in the history of Harvard University.

The Obama administration is seeking a mini-stimulus of $200bn to help the economy "out of a very deep valley," while asking Congress for powers to cut unnecessary spending. 

The US government must find a balance between supporting the economic recovery and reducing long-term budget deficits, White House economic adviser Lawrence Summers said Monday. While the economy has resumed its growth and the possibility of a depression now seems remote, the government should continue its efforts to spur job growth and boost economic output, said Summers, who is director of the White House National Economic Council. The challenges posed by the nation's growing budget deficit "cannot be ignored," he added.

The former Treasury secretary in the Clinton administration said in a speech at Johns Hopkins University, that there is an old joke about economics exams.  The questions never change, but the answers always do. 

Summers said economists at some points seem to be saying that budget deficits need to be reduced in order to grow the economy, prevent financial Armageddon, or to keep the country solvent - - and, at other times, to be asserting that budget deficits need to be expanded to prevent depression, permit public investment, and promote growth. 

"And then there are, of course, there are Harry Truman’s legendary two-handed economists who offer one list on the one hand and another list on the other hand." he said.

Summers who became a professor of economics at Harvard University at the age of 28, said these questions about fiscal policy are especially pressing right now.  Fiscal issues are at the centre of the economic concerns in Europe, and while almost everything about fiscal policy is debatable and debated, "I suspect that a wide array of observers across the political spectrum would agree that the fiscal policy choices that the United States makes over the next several years will be as consequential as any we have made in a very long time. 

I say this in part of because of the cyclical position of the American economy and in part because of the magnitude of projected deficits and the nature of fiscal trends."

Insight on whether the reducing unnecessary spending act will stand a chance of getting passed by Congress, with Alison Fraser, Heritage Foundation and Jim Nussle, former OMB director:

Summers said it was "essential" for the government to run deficits over the last few years as the economy fell into one of the deepest recessions on record.

He said the government's stimulus measures helped revive economic growth, though he acknowledged that many households are still struggling as unemployment hovers near 10%. As a result, he said it is crucial for the government to continue its efforts to support the economy in the near future.

"It would be an act of fiscal shortsightedness to break from the longstanding practice of extending these provisions at a moment when sustained economic recovery is so crucial to our medium-term fiscal prospects," he said.

“The observation that the economy is again ascending does not mean that we are out of a very deep valley,” added Summers.

President Obama proposed on Monday that the White House should be able to present lawmakers with a package of “rescissions” - - or cuts - - - from any spending bill. Congress would then have to vote on changes within a set time frame.

Discussing whether the economic situation in the United States is beginning to resemble Greece or Japan, with Mike Mussa, Peterson Institute and Peter Schiff, Euro Pacific Capital;

Related Articles
403 Forbidden

Forbidden

Execute access is denied.


© Copyright 2010 by Finfacts.com

Top of Page

International
Latest Headlines
Friday Newspaper Review - Irish Business News and International Stories - - September 12, 2014
Thursday Newspaper Review - Irish Business News and International Stories - - September 11, 2014
Wednesday Newspaper Review - Irish Business News and International Stories - - September 10, 2014
Tuesday Newspaper Review - Irish Business News and International Stories - - September 09, 2014
Monday Newspaper Review - Irish Business News and International Stories - - September 08, 2014
Friday Newspaper Review - Irish Business News and International Stories - - September 05, 2014
Thursday Newspaper Review - Irish Business News and International Stories - - September 04, 2014
Monday Newspaper Review - Irish Business News and International Stories - - September 01, 2014
Friday Newspaper Review - Irish Business News and International Stories - - August 29, 2014
Thursday Newspaper Review - Irish Business News and International Stories - - August 28, 2014
Wednesday Newspaper Review - Irish Business News and International Stories - - August 27, 2014
Tuesday Newspaper Review - Irish Business News and International Stories - - August 26, 2014
Wednesday Newspaper Review - Irish Business News and International Stories - - August 20, 2014
Tuesday Newspaper Review - Irish Business News and International Stories - - August 19, 2014
Monday Newspaper Review - Irish Business News and International Stories - - August 18, 2014
Friday Newspaper Review - Irish Business News and International Stories - - August 15, 2014
Thursday Newspaper Review - Irish Business News and International Stories - - August 14, 2014
Wednesday Newspaper Review - Irish Business News and International Stories - - August 13, 2014
Tuesday Newspaper Review - Irish Business News and International Stories - - August 12, 2014
Monday Newspaper Review - Irish Business News and International Stories - - August 11, 2014
Friday Newspaper Review - Irish Business News and International Stories - - August 08, 2014
Thursday Newspaper Review - Irish Business News and International Stories - - August 07, 2014
Thursday Newspaper Review - Irish Business News and International Stories - - July 31, 2014
Wednesday Newspaper Review - Irish Business News and International Stories - - July 30, 2014
Tuesday Newspaper Review - Irish Business News and International Stories - - July 29, 2014
Monday Newspaper Review - Irish Business News and International Stories - - July 28, 2014
Friday Newspaper Review - Irish Business News and International Stories - - July 25, 2014
Wednesday Newspaper Review - Irish Business News and International Stories - - July 23, 2014
Tuesday Newspaper Review - Irish Business News and International Stories - - July 22, 2014
Monday Newspaper Review - Irish Business News and International Stories - - July 21, 2014
Friday Newspaper Review - Irish Business News and International Stories - - July 18, 2014
Thursday Newspaper Review - Irish Business News and International Stories - - July 17, 2014
Wednesday Newspaper Review - Irish Business News and International Stories - - July 16, 2014
Tuesday Newspaper Review - Irish Business News and International Stories - - July 15, 2014
Monday Newspaper Review - Irish Business News and International Stories - - July 14, 2014
Friday Newspaper Review - Irish Business News and International Stories - - July 11, 2014
Thursday Newspaper Review - Irish Business News and International Stories - - July 10, 2014
Wednesday Newspaper Review - Irish Business News and International Stories - - July 09, 2014
Tuesday Newspaper Review - Irish Business News and International Stories - - July 08, 2014
Monday Newspaper Review - Irish Business News and International Stories - - July 07, 2014