President Barack Obama's top economist called on Congress to extend these payroll tax cuts and unemployment benefits which he said would help maintain economic momentum.
"If Congress does follow the president's call to extend the payroll tax cut and to continue the extended unemployment benefits, that will help maintain this momentum (and) the economy will be stronger going forward," Krueger told Reuters Insider on Friday.
Data released earlier on Friday showed the U.S. unemployment rate dipped to 8.3 percent in January and the economy created new jobs at the fastest pace in nine months, in welcome news for Obama as he seeks re-election later this year.
Majority leader Harry Reid declined to provide details on how the package would be financed, saying “we are not going to discuss how we are going to pay for it.”Reid declined to provide details on how the package would be financed, saying “we are not going to discuss how we are going to pay for it.”It is great news to see that the unemployment rate has dipped so low. Do you think that extending these tax cuts and unemployment benefits will help maintain economic momentum? Is it bad that they are not discussing how these benefits will be financed?
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I hope the tax cuts are extended. I think that they helped a lot of people out and put money in their pockets that they could then use to pump back into the economy.
ReplyDeleteI think that Mike makes a good point, but honestly I think another tax break is the last thing we need. When people get the extra money from a tax break they are not spending it, they are saving it. For this idea to work, people NEED to be spending. If people dont spend money, there is no money circulating in the economy. People will expect the government to spend money and keep the circulation going, but the government doesnt have the money...they gave it back to us to do the spending. I dont know just some food for thought.
ReplyDeleteGreat points. While the Fed is pursuing policies to increase consumer spending, consumers are fearful of the future and choosing to save. If consumers were more optimistic about the future of the U.S. economy, perhaps they would be encouraged to spend this "extra money". Confidence in U.S. business is a priority in order to induce consumer spending
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