Tags: Steve Forbes | Economic | Recovery | Flimsy | Unsustainable

Forbes: Economic Recovery Is Flimsy, Unsustainable

Wednesday, 06 Jan 2010 01:35 PM

The U.S. economy is recovering, but at a flimsy and seemingly unsustainable pace, writes famed publisher and business columnist Steve Forbes.

In his bi-weekly column in Forbes magazine, Forbes reckons that despite all the obstacles, the U.S. economy will somehow grow in 2010.

But there is a big caveat.

“The pace won't be blistering, but it will certainly be better than what we've experienced since the summer of 2008,” writes Forbes.

“It'll be the equivalent of a baseball batter who's been hitless and suddenly achieves an average of .250 — very mediocre; especially considering our economy is capable of batting .400.”

Whatever growth the United States manages to post will be a result of loose monetary policy, just as it was in the 1970s.

“All of the administration's policies — the weak dollar, higher taxes, and heavy doses of new regulations — are going to hurt. Thus the expansion will be flimsy and unsustainable,” writes Forbes.

Though subpar relative to the size of the economic decline of the last year, the growth will enable states and municipalities to avoid defaults on their bonds and bankruptcies.

“The one big understated purpose of the President's bloated stimulus bill of 2009 was precisely to funnel considerable cash to keep states such as California and New York from going under,” writes Forbes.

“Given the current mood of the country, Washington will be hard put to pull off a repeat performance. Local governments are finally going to have to engage in very serious belt-tightening. And a handful of states will go to the fiscal wall — California, New York and Michigan, among them.”

Others agree that the outlook is less than solid.

ABC News is reporting that the recession continues, and has been the longest period of slow growth for the United States in 71 years.

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The U.S. economy is recovering, but at a flimsy and seemingly unsustainable pace, writes famed publisher and business columnist Steve Forbes. In his bi-weekly column in Forbes magazine, Forbes reckons that despite all the obstacles, the U.S. economy will somehow grow in...
Steve Forbes,Economic,Recovery,Flimsy,Unsustainable
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2010-35-06
Wednesday, 06 Jan 2010 01:35 PM
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