Tags: BNTEAMS | BON | BUD | BUSINESS | CECO | CEN | COS

Summers: Expand Stimulus to Avoid Lost Decade

Monday, 13 Jun 2011 07:34 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
The U.S. government should expand stimulus by extending a payroll tax cut to employers to avoid a so-called lost decade of stagnation, former U.S. Treasury Secretary Lawrence Summers wrote in the Financial Times.

“Substantial withdrawal of fiscal stimulus at the end of 2011 would be premature,” Summers, now a professor at Harvard University, said in an article published in the London-based newspaper today. “Stimulus should be continued and indeed expanded by providing the payroll tax cut to employers as well as employees.”

President Barack Obama’s administration, which in January extended a 2 percentage-point reduction in worker contributions to the payroll tax during 2011, should also increase it to 3 percentage points, Summers said. The U.S. is “half way to a lost economic decade” and these measures would “raise the prospect of sizeable improvement in economic performance over the next few years,” he said.

The “near-term cost” of the steps will be about $200 billion, Summers wrote in an opinion article in The Washington Post dated yesterday.

“It is far too soon for financial policy to shift toward preventing future bubbles and possible inflation, and away from assuring adequate demand,” the former Treasury secretary wrote in the FT.

“The fiscal debate must accept that the greatest threat to our creditworthiness is a sustained period of slow growth,” he said. “Discussions about medium-term austerity need to be coupled with a focus on near-term term growth.”


© Copyright 2014 Bloomberg News. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Mali's Islamists Withdraw Cease-Fire Pledge

Friday, 04 Jan 2013 13:06 PM

Tens of thousands of Fatah supporters rallied in the Hamas stronghold of Gaza on Friday for the first time since they we . . .

Fmr. CIA Director Hayden: Iran Nuclear Crisis Gets 'Scarier'

Tuesday, 17 Jul 2012 18:11 PM

 . . .

Join Fmr. CIA Director for Special Iran Briefing, Assess the Danger

Friday, 13 Jul 2012 12:27 PM

 . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved