Read the following quote from CHRISTINA ROMER, outgoing head of President Obama\
ID: 1180901 • Letter: R
Question
Read the following quote from CHRISTINA ROMER, outgoing head of President Obama's Council of Economic Advisors. Based on this quote, explain her position on the necessary steps for an effective fiscal policy. Furthermore, analyze her perspective in terms of the way such policy could be successful. NEEDS TO BE A SHORT ESSAY
Stimulus Lost, "The Economist," September 1, 2010
CHRISTINA ROMER said the following:
The Administration understood that the recovery would be difficult precisely because many of the usual drivers of growth were missing. That is why we included $266 billion of additional temporary recovery measures in our 2011 budget. Congress has taken some important steps, including extending unemployment insurance, allocating funds to prevent teacher layoffs, and passing the HIRE tax credit to encourage firms to hire unemployed workers. However, it has enacted substantially less than what the Administration proposed. As a result, the economy has not had all the additional support that it needed.
While we would all love to find the inexpensive magic bullet to our economic troubles, the truth is, it almost surely doesnt exist. The only surefire ways for policymakers to substantially increase aggregate demand in the short run are for the government to spend more and tax less. In my view, we should be moving forward on both fronts.
Explanation / Answer
CHRISTINA ROMER, prominent academic economist and outgoing head of Barack Obama's Council of Economic Advisors, gave her final speech as an administration member today
But while the Obama administration is reportedly considering new fiscal proposals, from small business tax cuts to infrastructure spending, that ship has almost certainly sailed.
But while the Obama administration is reportedly considering new fiscal proposals, from small business tax cuts to infrastructure spending, that ship has almost certainly sailed.
Based on what I've seen, the votes appear to be there for an extension of the Bush tax cuts
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