Tags: US | Geithner | Jobs

Geithner: Jobless Rate to Stay 'Unacceptably High'

Thursday, 01 Apr 2010 08:03 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

Treasury Secretary Timothy Geithner said Thursday it's "deeply unfair" that some financial institutions that got taxpayer-paid bailouts are emerging in better shape from the recession than millions of ordinary Americans.

He acknowledged public outrage over that and said people watched with disdain as Washington protected high-risk banks and investment houses, even as the national unemployment rate was soaring to double-digit levels for the first time in a generation.

But in a nationally broadcast interview, Geithner also argued that President Barack Obama had no choice when confronted with a financial crisis.

"As the president has said, we had to do some very unpopular things," Geithner said. "People looked at what had happened."

"It's not fair. It's deeply unfair," he said. "He (Obama) had to decide whether he was going to act to fix it or stand back ... and that would have been calamitous for the American economy."

The government eventually embarked on a program of assisting the threatened financial institutions, and the sweeping, multibillion-dollar Troubled Asset Relief Program (TARP) created as a bailout engine.

Geithner also said that administration officials are "very worried" about recovering the more than 8 million jobs lost in the recession. But he noted that business growth has been improving and expects the economy "is going to start creating jobs again."

The secretary agreed that the national jobless rate — now at 9.7 percent — is "still terribly high and is going to stay unacceptably high for a very long time" because of the damage caused by the recession.

"Just because this was the worst economic crisis since the Great Depression," Geithner said, "a huge amount of damage was done to businesses and families across the country ... and it's going to take us a long time to heal that damage. "

More than 11 million people now are drawing unemployment insurance benefits, and the overall jobless rate of 9.7 percent understates the true level of economic misery because many people who give up looking for work are no longer in the official count of the unemployed. The Bureau of Labor Statistics on Friday will release a report on conditions in the labor markets in March.

Geithner said he hopes skeptical voters will note legislation moving through Congress to bring reforms to the financial system.

"What happened in our country should never happen again," he said. "People were paid for taking enormous risks. It was a crazy way to run a financial system." Geithner said, "It's the government's job ... to do a better job of restraining that kind of risk-taking."

The Geithner interview was broadcast Thursday on NBC's "Today" show.

(This version CORRECTS Corrects time element in last graf. Moving on general news and financial services.)

© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

California Insurance Rates Soar Up to 88% After Obamacare

Tuesday, 29 Jul 2014 15:48 PM

Health-care insurance premiums for individuals in California rose between 22 percent and 88 percent in 2014 from last ye . . .

Mississippi's Only Abortion Clinic Stays Open After Court Ruling

Tuesday, 29 Jul 2014 15:26 PM

Mississippi's lone abortion clinic will remain open after an appeals court criticized as probably illegal a state law re . . .

Texas Attorney General: Gay-marriage Ban Best for Children

Tuesday, 29 Jul 2014 15:25 PM

Texas' ban on same-sex marriage allows the state to promote the birth and upbringing of children in stable, lasting rel . . .

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