madfranks
14th June 2011, 03:27 PM
In an ironic twist, the cause for the junkie's addiction is also the cure, just pump in more and more heroin until he feels better. Right Summers? :o
http://money.cnn.com/2011/06/13/news/economy/summers_stimulus/
Summers: More stimulus needed
NEW YORK (CNNMoney) -- Larry Summers, formerly one of the top economic advisors to President Obama, is advocating more government stimulus to jumpstart the struggling U.S. economy.
In opinion pieces Monday in the Washington Post and Financial Times, Summers, who was the first director of the National Economic Council under Obama, says that the United States is at risk of falling into a "Lost Decade (http://money.cnn.com/2011/06/08/news/economy/economy_debt_unemployment/index.htm?iid=EL)" of prolonged weak economic growth and high unemployment unless more action is taken in the near term.
"We averted Depression in 2008/2009 by acting decisively. Now we can avert a lost decade by recognizing economic reality," he wrote.
Summers wrote that demand is likely to stay weak without the government taking steps to spur spending. He said the U.S. could have fallen into a double-dip recession (http://money.cnn.com/2011/06/10/news/economy/recession_economic_survey/index.htm?iid=EL) already if not for the tax cuts and payroll tax holiday passed at the end of last year.
"The central irony of financial crisis is that while it is caused by too much confidence, borrowing and lending, and spending, it is resolved only by increases in confidence, borrowing and lending, and spending," he wrote in both columns.
Summers argued that the debate over how best to cut federal government's deficit (http://money.cnn.com/2011/06/09/news/economy/federal_spending_cuts/index.htm?iid=EL) and long-term debt outlook shouldn't take precedent over doing more to promote economic growth in the short-term.
"The greatest threat to the nation's creditworthiness is a sustained period of slow growth," he wrote.
http://money.cnn.com/2011/06/13/news/economy/summers_stimulus/
Summers: More stimulus needed
NEW YORK (CNNMoney) -- Larry Summers, formerly one of the top economic advisors to President Obama, is advocating more government stimulus to jumpstart the struggling U.S. economy.
In opinion pieces Monday in the Washington Post and Financial Times, Summers, who was the first director of the National Economic Council under Obama, says that the United States is at risk of falling into a "Lost Decade (http://money.cnn.com/2011/06/08/news/economy/economy_debt_unemployment/index.htm?iid=EL)" of prolonged weak economic growth and high unemployment unless more action is taken in the near term.
"We averted Depression in 2008/2009 by acting decisively. Now we can avert a lost decade by recognizing economic reality," he wrote.
Summers wrote that demand is likely to stay weak without the government taking steps to spur spending. He said the U.S. could have fallen into a double-dip recession (http://money.cnn.com/2011/06/10/news/economy/recession_economic_survey/index.htm?iid=EL) already if not for the tax cuts and payroll tax holiday passed at the end of last year.
"The central irony of financial crisis is that while it is caused by too much confidence, borrowing and lending, and spending, it is resolved only by increases in confidence, borrowing and lending, and spending," he wrote in both columns.
Summers argued that the debate over how best to cut federal government's deficit (http://money.cnn.com/2011/06/09/news/economy/federal_spending_cuts/index.htm?iid=EL) and long-term debt outlook shouldn't take precedent over doing more to promote economic growth in the short-term.
"The greatest threat to the nation's creditworthiness is a sustained period of slow growth," he wrote.