Tags: Forbes | Recovery | us | economy

Steve Forbes: Recovery Isn’t as Strong as It Should Be

Monday, 26 March 2012 12:32 PM

The economy is showing some signs of improvement but the pace of recovery isn't as strong as it could be, says publisher and one-time GOP presidential hopeful Steve Forbes.

Blame a weak dollar, higher taxes and regulations from bills such as the Patient Protection and Affordable Care Act and Dodd-Frank financial reform law, Forbes tells CNBC.

"We had a very vigorous recovery from the severe recession in the 1980s," Forbes says.

Editor's Note: Wall Street Insider Exposes Death of Main Street America

"The recovery — this time — I don't think it's going to benefit the President very much, is the fact that it's not a vigorous one."

Normally economies snap back from recessions, and today's growth rates of around 3 percent should run closer to 6 percent or higher.

Meanwhile, an end to Bush-era tax cuts on capital gains and dividends will further hamper growth.

"If nothing is done, dividends go from 15 percent to 45 percent, capital gains from 15 percent to 24 percent," Forbes says.

"Now, Congress will be in a mood to do something, but the President is not going to let those tax cuts of 10 years ago remain for upper income earners."

Unemployment still serves as a bane to economic recovery.

Fed Chairman Ben Bernanke said that falling unemployment rates likely reflect businesses refilling positions slashed during the recession, but demand in the economy hasn't recovered enough to make serious improvements in the labor market.

"Further significant improvements in the unemployment rate will likely require a more rapid expansion of production and demand from consumers and businesses, a process that can be supported by continued accommodative policies," Bernanke told a gathering of the National Association for Business Economics, according to Reuters.

Editor's Note: Wall Street Insider Exposes Death of Main Street America

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