Tags: vito | Fossella | High | Unemployment | Reflection | Obama | policies

Fossella: High Unemployment Reflects Obama Policies

By Forrest Jones and Ashley Martella   |   Thursday, 17 Feb 2011 08:00 AM

Stimulus spending and other economic policies spearheaded by the Obama administration have done nothing to lower high unemployment rates, says former U.S. Congressman Vito Fossella.

The government should have focused on ways to spark private companies to invest and hire instead of trying to spend its way out of the recession, which has only helped increase the country's debt burden, says the former Republican congressman from New York who served as a member of the House Financial Services Committee.

"There was this guise that stimulus is going to resurrect the economy and put millions of people back to work," Fossella tells Newsmax.TV.

Story continues below video.


"Many people, including myself at the time, said it was a waste of money and a waste of energy and the focus and the goal should be to incentivize American workers and businesses to put people back to work,” says Fossella, now managing director at public policy and business development firm Park Strategies.

“The American people should be given those creative tools that really would resurrect the economy and expand the tax base and grow us out of this recession/depression and really and truly lower unemployment for the long haul."

Federal Reserve Chairman Ben Bernanke said recently that unemployment rates will remain elevated for quite some time.

"I think it's essential for both Congress and the Fed to get together to figure out ways to truly stimulate this economy and allow American businesses to put more people to work and not waving a wand out of Washington as if it's going to happen tomorrow," says Fossella.

Meanwhile, the government must tackle the debt on both fiscal and monetary-policy fronts, and do so now.

"I think anyone that feels you can just control government spending and just raise it to astronomical levels, that you can have $1.5 trillion in deficits and you can have debt as far as the eye can see, and simultaneously, you have a Fed that is just printing money that I think ultimately will have inflationary effects, anyone — whether you're a Democrat or Republican — that embraces that idea is complicit."

While spending must be checked, it's likely that the government will see an increase to its debt ceiling, Fossella adds.

In any event, both parties need to realize that spending has to be cut.

"I think the focus should be with the Democrats and the Republicans working together along with the administration to find out what we can afford, and spend what we can on things that are essential. What's not essential right now should not be part of the receipt. At the end of the dinner you don't order things that you don't need when you don't have any money in your pocket. Right now the focus should be on spending on things that are essential to the American people."

© 2017 Newsmax Finance. All rights reserved.

1Like our page
2Share
StreetTalk
Stimulus spending and other economic policies spearheaded by the Obama administration have done nothing to lower high unemployment rates, says former U.S. Congressman Vito Fossella. The government should have focused on ways to spark private companies to invest and hire...
vito,Fossella,High,Unemployment,Reflection,Obama,policies,us,economy
470
2011-00-17
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved