|
|
|
| Current Issue |
|
|
| Resources |
|
|
|
Starting Up the Economy
| Article
# : |
10504 |
|
|
Section : |
CURRENT ISSUES
|
| Issue
Date : |
1 / 1993 |
1,743 Words |
| Author
: |
Anne Veigle
Anne Veigle covers the economy for The Washington Times. |
Now that American voters have chosen their president, Bill Clinton must tackle the task of turning a slow economy into a roaring success.
While sifting through his pile of promises, Clinton will have to confront an uncomfortable vision: Getting the economy moving again may cost a high price that could destroy his political future.
What people really want (and they want it now, not a year from now) are more jobs. They want to be assured the jobs won't go away. They'd like home prices to stop falling and health care costs to stay in line. They want bank accounts to pay higher interest rates. They want to buy a new car, a new stove, a new refrigerator and not go broke.
Sound simple? Yes, if you listened to the glowing descriptions of the economic future in the plans put forth by the presidential candidates.
But what do the professional number crunchers think?Economists, who got plenty of opportunities to pontificate about the candidates' plans during the campaign, offer few answers and little consensus.
Of course, the biggest bugaboo is the bulging federal deficit--brought to your attention by the folksy, tell it to the them straight Ross Perot. The blustery Texas billionaire pulled off the one thing few politicians would touch: He focused public attention on the federal deficit.
Perot said what most economists have said for a long time: The new president must make it a priority to devise a plan for reduction.
Many economists also think the mere fact of deciding the election and the prospect of new faces in the White House could pump confidence into the frightened consumer and help spur spending.
"The U.S. economy has a reasonable chance of building momentum in 1993," says Robert Barbara, economist with the New York investment firm Shearson Lehman Brothers. "A change in leadership should boost spirits, and a small dose of fiscal stimulus will likely be the icing on the cake."
Fiscal stimulus--Washington shorthand for increasing government spending--is one of two main tools for combating a recession. The second is to lower interest rates, which are set by the
...
Read Full Article
Look for this article in Ask.com
|
|
