Tuesday, September 7, 2010

Another ways to economic recovary

Gist: President Barack Obama introduced another stimulus plan for government infrastructure project which is going to cost another $50 billion.
In this section, they were going to question about whether pouring another $50 billion into stimulus after last year $800 billion in stimulus money or not. Howard Rosen from Peterson Institute for International Economics said it's time to switch the strategy from stimulating consumptions to stimulating investments. Cutting income taxes and some policies like that may be a help stoping the recession, but creating the stable empolyment can really raise the economy. However, Rober Shapiro, a commerce under-secretary in the Clinton Administration, indicate that investment-based tax credit will not drive the recovery. Business still need strong demand from market to balance the money put into investment. He recommanded the offering more support which can make the consumers feel more confident in spending.

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