Posted on 08/23/2010 8:57:07 PM PDT by DeaconBenjamin
Ethan Harris, the bank's chief North American economist, said early data for August suggest that "an already weak recovery is getting weaker" with a rising risk of a relapse into recession, yet the two parties seemed determined to outbid each other with austerity measures.
"Politicians are clamouring for quick action, not to stimulate a dangerously weak economy, but to bring down the budget deficit. We strongly support efforts to bring down the deficit, but only once the economy is on a healthy growth trajectory," Mr Harris said.
The Democrats want to see an end to the Bush tax cuts for the wealthy: the Republicans want to cancel infrastructure projects designed to keep the building industry alive, arguing that it crowds out private enterprise
"The most pressing concern to us is that absent new legislation, all of the Bush tax cuts expire at the end of this year. We estimate that would represent a 2pc hit to household income. If such an increase were not reversed, we believe it could trigger a double-dip recession."
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The Congressional Budget Office estimates that fiscal policy will swing from boost equal to 2pc of GDP (annualised) earlier this year to a withdrawal of 2pc by late next year, without a change of policy. This risks a shock to the system at a time when then inventory cycle is fading and the economy has failed to reach "escape velocity".
Yet a view is taking hold on Capitol Hill that federal spending is out of control and has itself become the main threat to durable recovery. "More people believe that Elvis Presley is alive than the stimulus created jobs," said Congressman Kevin McCarthy, a leader of the Tea Party movement.
(Excerpt) Read more at telegraph.co.uk ...
We build bridges with 25 men and a lot of heavy equiptment.
It will take a new President 10 minutes to undo most of the damage. Then the recovery can begin.
Your right, we don't need that many workers. There's not going to be as many construction jobs as in the Great Depression because machinery replaced all the workers.
The shovels are huge Manitawoc and American Cranes. Earth Movers and Backhoes.
It’s only a double dip if you use the cooked govt data.
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