urgent need to revive us economy
Last Updated : GMT 17:50:28
Arab Today, arab today
Arab Today, arab today

Urgent need to revive US economy

Arab Today, arab today

Arab Today, arab today Urgent need to revive US economy

Washington - Arabstoday

New York Anyone expecting bold new ideas to resuscitate the economy from President Barack Obama’s speech on Thursday probably came away disappointed. It’s not that Obama’s proposals — a mix of tax credits for small businesses and clean energy, and spending on infrastructure and education — are bad. It\'s just that they’re shopworn and too timid to break the political stalemate in Washington. The Democratic president effectively showcased the differences between his vision and Republican candidate Mitt Romney’s plan for a rollback of regulation and $5 trillion (Dh18.35 trillion) in new tax cuts. Unfortunately, drawing these distinctions won’t do much for the US economy; it’s stalling now. As in the past two years, economic growth seems to have petered out midyear. Gross domestic product is now expected to increase just 2 per cent in 2012, too little to bring down unemployment in a meaningful way. A Federal Reserve report released this week shows the blunt force trauma of the recession, which erased almost two decades of Americans’ wealth and sent the median net worth of families plummeting to $77,300 — a level not seen since 1992. Private payrolls remain below 2001 levels, meaning not a single net private-sector job has been created in more than a decade. It’s no wonder Federal Reserve Chairman Ben S. Bernanke practically begged lawmakers last week to take some of the burden off the Fed’s shoulders and help goose the economy.Election-year politics and entrenched Washington gridlock have stymied most of Obama’s spending proposals. Breaking through will require more political ingenuity than the president has shown. Still, he ought to have plenty of incentive: His job is at stake. Tax rebate So how might one devise a plan to satisfy Republican calls for tax cuts and austerity and Democrats’ desire for increased spending to stimulate job growth and help the middle class? Here’s one idea: Pair a one-time tax rebate with long-term deficit reduction similar to that offered by the Simpson-Bowles fiscal commission. Such a move would allow Republicans to claim a spending-cut victory while allowing Democrats to take credit for putting a sizable check in workers’ pockets. The cudgel to promote action is the so-called fiscal cliff, the unholy combination of more than $600 billion in tax increases and spending cuts slated to take effect in January. The nonpartisan Congressional Budget Office says that if the government fails to extend expiring tax provisions and to blunt the scheduled spending cuts, growth will slow to 0.5 per cent, with the economy contracting at an annual rate of 1.3 per cent in the first half of 2013 and 2.3 per cent in the second half. In other words, we could be back in a recession. The rationale for additional government spending at this moment is compelling: Interest rates are near a historic low, and long-term unemployment is threatening the future of millions. More than 5 million of the 12.7 million people who are unemployed have been jobless for 27 weeks or more, a higher portion than at any time over the past 60 years. A new paper by former Obama economic adviser Lawrence Summers and Berkeley economist J. Bradford Delong suggests that under current conditions stimulus could ultimately be self-financing; it would put people back to work and increase the tax base, thus reducing the long-run debt burden. Economic inertia To be effective, a new stimulus must be temporary, targeted and big enough to break the economy’s inertia. A rebate can offer more bang for the buck than other forms of tax relief, in part because rebates are often perceived by recipients as a bonus that they can afford to spend. (We are a consumer-driven economy.) By contrast, research shows that most recipients didn’t even notice the tax relief from Obama’s 2009 Making Work Pay credit, which provided an average tax cut of $508. Another benefit: Rebates have no risk of becoming permanent, unlike payroll tax cuts, which are difficult to claw back. Yes, a tax rebate will only further inflate the federal deficit. That’s an unfortunate necessity. It’s also why any such expense now should be paired with a detailed framework for long-term deficit reduction. A good blueprint for fiscal rectitude is the report by the Simpson-Bowles commission, which sensibly calls for spending caps, reducing tax rates, eliminating backdoor tax breaks and reforming entitlement programmes such as Social Security. Speaking in Ohio, Obama said he sees a determination to overcome the challenges we face. It would be nice, in the days ahead, to be able to say the same about Democrats and Republicans, incumbents and challengers alike.from gulfnews.com

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

urgent need to revive us economy urgent need to revive us economy

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

urgent need to revive us economy urgent need to revive us economy

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Japanese regulators raid Airbnb

GMT 00:44 2017 Monday ,20 November

Japanese regulators raid Airbnb
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Saudi, Bahrain target Iran

GMT 00:48 2017 Monday ,20 November

Saudi, Bahrain target Iran
Arab Today, arab today Europe turns on Facebook, Google

GMT 02:26 2017 Monday ,20 November

Europe turns on Facebook, Google
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Driverless, electric future just round

GMT 02:45 2017 Monday ,20 November

Driverless, electric future just round
Arab Today, arab today Tesla unveils its all-electric semi truck

GMT 02:59 2017 Saturday ,18 November

Tesla unveils its all-electric semi truck
Arab Today, arab today Mona Abdel Ghany increased artistic activities

GMT 12:15 2017 Friday ,17 November

Mona Abdel Ghany increased artistic activities
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 12:22 2017 Thursday ,16 November

Hanan Metawe denies apology for “Major Treason”

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 02:28 2017 Saturday ,18 November

Anti-drug operation nets 4 tonnes

GMT 01:34 2017 Friday ,17 November

Banyan Tree Phuket Takes Festive Season

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday