August 3rd, 2010
06:07 PM ET
4 years ago

Lawmakers are warned: Inaction hurts economy

Washington (CNNMoney.com) - Congress needs concrete plans for tax cuts, stimulus and deficit control because inaction dooms the economy to slow growth, a panel of economists told lawmakers on Tuesday.

The economists, who testified before the Senate Budget Committee, had gloomy outlooks for growth in 2011, offering annual GDP forecasts ranging from 3% to 4%.

"It's a disappointing recovery," said Simon Johnson, who teaches at the Massachusetts Institute of Technology's Sloan School of Management. "It's probably one of the slowest recoveries we've had since World War II."

Joel Naroff, president and founder of Naroff Economic Advisors, predicted even slower growth of 2% to 2.5% - if Washington fails to make major "changes in fiscal or monetary policy."

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Filed under: Congress • Economy • issues
soundoff (19 Responses)
  1. ib

    This is Obama's fault not Bush's. His out of controll spending; the higher taxes that we will be hit with as a result and his attacks on business people will lead to higher job loses. Obama is to busy pushing HIS agenda to worry about the working man.

    August 3, 2010 06:12 pm at 6:12 pm |
  2. Liz the First

    The recovery would've been a lot faster and stronger if the Dems didn't have to water down the measures to fix it in order to try to lure even one rethug to vote to do something decent for this country only to have them all vote NO! how many times to the rethugs have to kick the American people in the teeth before they realize it's happening????? how blind and gullible to you have to be, DOUG, to realize these people are screwing you six ways to sunday and not even kissing you? talk about biting the hand that feeds you, these cretins who post all the anti-Democrat, anti-Liberal hate are villifying the very people who have their best interests at heart and are working to protect them from the people who are screwing them!! how bad does it have to get before they realize this?

    August 3, 2010 06:14 pm at 6:14 pm |
  3. FRANK - LAS VEGAS

    Inaction that hurts the economy is exactly what the GOP wants, to hurt America and blame the Democrats for their own inaction. Is there really anyone who can't see that the GOP is really harming America and American families?

    Vote NO in NOvember to the party of NO.

    August 3, 2010 06:20 pm at 6:20 pm |
  4. Four and The Door

    "You probably could have cut taxes to households and businesses all you want, but the return to those tax cuts would have been minimal because businesses and households were looking to survive rather than spend in any shape, form or manner," Naroff said
    ______________________________________________________
    Exactly. This is consistent with the reasoning behind keeping the Bush Tax Cuts. These people spend money on their businesses by investing. This means more jobs and more money directly back into the economy. Sure there are plenty of sarcastic posters out there who hate people who have money in their businesses, but that doen't change the fact that these are the people who create jobs. That's what we need. Put people to work; extend the tax cuts.

    August 3, 2010 06:25 pm at 6:25 pm |
  5. jim

    What we need is some sound fiscal policies to deal with the nation's problems ,not this crap that these economist are recommending to Congress. Could it be that these people are just trying to promote an agenda that is espoused by Obama , one that has been tried in every place in the world and has failed !!!!

    August 3, 2010 06:26 pm at 6:26 pm |
  6. Proud member of Global Zero

    I agree. I just wish that the Republican party I used to be a part of would think about their children's future. We cannot continue tax cuts, 2 wars, and not invest in new jobs. The jobs of the future are Green jobs.
    I was sad when my father sent his steel production plant to Monterry Mexico. He laid off a plant full of hard working Americans. These are the people that sold out our country for a profit.

    It is time to invest in Green Jobs.

    August 3, 2010 06:51 pm at 6:51 pm |
  7. The problem is......

    is that Obama is so busy working on his socialist agenda that he has ignored the economy and the job creation that is needed....

    But he and the Dems will pay for this at the polls.....

    August 3, 2010 06:51 pm at 6:51 pm |
  8. Remi

    Soak the rich with be the populist theme from all the crazies. I wouldn't expand my business by one employee until I know what they are doing about the Bush tax cuts. I would rather invest my money long term for capital gains with no income than pay my future rate of 39.6 and max out my gifts annually to my kids an grandkids every year.

    August 3, 2010 06:52 pm at 6:52 pm |
  9. Michael

    Republicans have been doing their worst for two years now to sabotage any kind of recovery from their frenzied pillaging of the middle class during the last administration, hoping to cast a public perception of blame on the current administration. If they succeed, they will return to their rapacious looting with renewed abandon until America finds itself in complete feudal mode.
    Hang them all for traitors; start with McConnell, Cantor, and Boehner.

    August 3, 2010 06:52 pm at 6:52 pm |
  10. jules sand-perkins

    Blame any president prior to Obama!
    Personally, I think that Nixon did it.

    August 3, 2010 06:54 pm at 6:54 pm |
  11. November

    May I suggest to the fine democrats that they just ignore this advice and go ahead and let taxes go up (it just affects the rich... right?) and keep on spending, spending, spending. After all we can probably spend our way into saving 20, no, 40 million jobs. Right? Somebody must believe this stuff because they voted them into office. Right?

    August 3, 2010 06:57 pm at 6:57 pm |
  12. Gary

    The slow recovery is because Republicans are obstructionists.

    August 3, 2010 06:57 pm at 6:57 pm |
  13. Take America Back

    And the Liberal Left Tax & Spend Dems said, "Duuuhhhhhh, I thought Obama said everything was getting better".
    You bunch of Liberal Idiots will never learn what is obvious to sane and intelligent people;
    1. You do NOT spend money you do not have!
    2. Paying people to NOT work will only produce people who do NOT work!
    3. Entitlement money only creates DEPENDENT people!

    Obambi is on his way out.....as well as his Cronie buddies Pelosi and Reid! BYE BYE!

    August 3, 2010 07:16 pm at 7:16 pm |
  14. Larry

    If the Republicans HELPED the rest of us Americans row this boat, instead of throwing anchors in the water, we would be so much further along in our efforts as Americans to bring this country back to where we deserve to be

    They attack our president, but who the Republicans are really attacking, are WE THE PEOPLE., it is us they hope to squelch, it is us they wish to work a little harder, so that they and their buddies in banking insurance and oil, can take it even a little easier

    Republican elected leaders ... you disgust me

    August 3, 2010 07:35 pm at 7:35 pm |
  15. George of the jungle

    well you know the repos won't allow any change.

    August 3, 2010 07:40 pm at 7:40 pm |
  16. Larry

    The Republican Party Of NO ... does not care, if they hurt Americas economy

    The Republicans only care about themselves, as is so obvious

    I greatly appreciate those in their ranks that have the "COJONES" to stand up for what they themselves believe in

    But the list of names is too short

    August 3, 2010 07:42 pm at 7:42 pm |
  17. vwrtb

    Thanks gop for your ability for compromise! Vote no to the party of no! Corporate tools!

    August 3, 2010 07:44 pm at 7:44 pm |
  18. Not fooled

    The private sector has 1.8 trillion set aside because they are not sure of Bush tax cuts. Well they know it is going to be the same rate as when Clinton was president so what's the problem? From 35% to 39.6%. They did pretty well then. They just want President Obama to fail.

    August 3, 2010 07:54 pm at 7:54 pm |
  19. DENNA

    Helloooo Republicans. Instead of digging in your heels and refusing to cooperate, why don't you come up with some decent ideas and present them to President Obama? No, tax cuts for the rich are not the answer. This is no guarantee that jobs will be created. If you think you will be better at running this country, give us a reason to believe. Be careful, as the Tea Party-Tinfoil-Hat crowd may be the death of you.

    August 3, 2010 08:22 pm at 8:22 pm |