Tags: Larry | Summers | stimulus | us | economy | larger | fed

Larry Summers: Stimulus Should Have Been Larger

Monday, 16 May 2011 09:24 AM

Larry Summers, the former chief economic strategist for President Barack Obama, says the massive economic stimulus package passed by Congress at the urging of the White House should have been even larger.

The stimulus bill passed in 2009 ended up at $787 billion and a lot of that money is still being doled out. Yet Summers contends in a recent interview that the figure the administration wanted — $1.2 trillion — would have been the better choice.

“There would have been all kinds of problems in actually moving $1.2 trillion dollars through the system — finding enough bridge projects that were ready to go and the like,” told The New York Times. “But the recovery probably would have proceeded more rapidly if the fiscal program had been larger. That’s why we advocated a larger fiscal program than the one that passed.”

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Larry Summers
(Getty Images photo)
The government now projects that the current year deficit is likely to exceed $1 trillion for the third consecutive year, despite rising tax receipts.

The deficit is expected to grow to $1.4 trillion, compared to $1.29 trillion in the previous fiscal year and matching the $1.41 trillion mark in 2009.

Spending hit $2.18 trillion through April, reports the Associated Press, an increase of 9 percent over a year earlier. Federal debt held by the public, essentially Treasury bonds, rose 13.1 percent as a debt category in the first seven months of the budget year, to $139.3 billion.

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Larry Summers, the former chief economic strategist for President Barack Obama, says the massive economic stimulus package passed by Congress at the urging of the White House should have been even larger. The stimulus bill passed in 2009 ended up at $787 billion and a lot...
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2011-24-16
Monday, 16 May 2011 09:24 AM
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