White House's Christina Romer - "Spend More Tax Less"

Christina Romer

The Obama administration, concerned about the weakening U.S. recovery, is pushing Congress to approve proposals to stimulate growth in the final two months before congressional elections. “The only surefire ways for policy makers to substantially increase aggregate demand in the short run are for the government to spend more and tax less,” Christina Romer, the departing White House chief economist, said in a speech in Washington yesterday. “We should be moving forward on both fronts.” Romer’s comments as she leaves her post tomorrow as chair of the Council of Economic Advisers highlight the Obama administration’s worries about slowing growth and a jobless rate forecast to remain above 9 percent through midterm elections in November. She warned that a failure by Congress to do more to bolster hiring risked “making high unemployment permanent” as idled workers’ skills deteriorate. Read more here:

White House's Christina Romer - "Spend More Tax Less"