Stimulus or Austerity?: That Is the Question
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Federal stimulus spending has fueled economic recovery. Has the time come to worry about the deficit? Will spending reductions and increased taxes be needed for long-term stability? If they're imposed too soon, will austerity measures lead back to recession? Also, the season’s first hurricane creates problems for the Gulf oil clean-up, and Google in China and the battle over Internet censorship.
Banner image: President Barack Obama and Office of Management and Budget Director Peter Orszag discuss the federal budget in the Oval Office Monday, January 26, 2009, during the President's first week in office. Orszag announced last week that he's stepping down. Official White House Photo: Pete Souza
Season’s First Hurricane Complicates Gulf Oil Clean-up ()
Hurricane Alex won't hit the Mississippi Delta directly, but it's causing six-foot waves to push more oil ashore from Louisiana to the Florida Panhandle. Tom Breen is a staff writer for the Associated Press in New Orleans.
- Tom Breen: Staff Writer, Associated Press
Stimulus or Austerity?: That Is the Question ()
The consensus is that federal stimulus spending helped to prevent recession from becoming depression and got recovery under way. President Obama is committed to pumping up the recovery with continued spending and to his campaign promise not to raise taxes on households earning less than $250,000 a year. Deficit hawks say it’s time to raise taxes and get spending under control. But would premature austerity measures stop the recovery in its tracks? From the G-20 conference to Capitol Hill, and even within the Obama White House, policy makers are sharply divided. White House budget director Peter Orszag has announced his resignation, and insiders say it’s due to frustration with the lack of aggressive action against the growing fiscal deficit. What are the lessons of history? Are states like New Jersey and countries like Ireland unwilling participants in what could be a dangerous experiment?
- Ed Luce: Washington Correspondent, Financial Times
- Alberto Alesina: Professor of Political Economics, Harvard University
- James Galbraith: Professor of Government and Economics, University of Texas at Austin
- Deirdre O’Shaughnessy: Editor, Cork Independent
- Stephen Sweeney: President, New Jersey State Senate
Can Google and China Make Amends? ()
Earlier this year, Google announced it would no longer submit to Chinese censorship, but would re-route Internet users to sites in Hong Kong. China called it “unacceptable,” and today was the day that Google's license to operate in China expired. The deadline passed without any announcement from China. Rebecca MacKinnon, visiting fellow at Princeton's Center for Information Technology Policy, testified today before the US-China Economic and Security Review Commission on China's information-control practices.
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