Treasury Secretary Tim Geithner says the Obama administration’s $787 billion stimulus package has worked well, so a second one is unnecessary.
“The combined effect of stimulus. . . and the efforts we took to stabilize the financial system . . . have been remarkably effective in arresting the freefall in economic growth,” he told CNBC.
To be sure, some additional steps are necessary, such as an extension of unemployment insurance, Geithner says. But he doesn’t see justification for a second stimulus.
Geithner also says taxes won’t rise for most Americans, although he dodged a question on the soon-to-expire Bush tax cuts.
Reviving the economy is the government’s key task he says.
“That's why we cut taxes as part of recovery for 95 percent of working Americans and for businesses across the country, and it does not make sense to raise taxes in a recession.”
Meanwhile, Geithner says the dollar will remain the world’s primary reserve currency.
As a result, “we need to do everything possible to sustain confidence in our ability to keep inflation low and. . . to make sure we're getting our fiscal house in order.”
Geithner says the administration isn’t anti-business.
“For our economy to be more productive in the future, it requires an atmosphere in which businesses are willing to innovate, to invest and to take risk.”
What Geithner sees as just a few additional fiscal measures, CNNMoney.com has identified what it calls a second, “stealth” stimulus package that could total $84 billion, including a job creation tax credit, and emergency payments to seniors.
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