July 17th, 2009
12:36 PM ET
12 years ago

White House adviser: Recovery slow but stimulus working

[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2009/images/07/17/art.larrysummers0716.gi.jpg caption=" National Economic Council Director Larry Summers warned Friday that unemployment is likely to rise in the coming months."]WASHINGTON (CNN) - A full economic recovery may be slow to materialize, but the administration's stimulus plan is working and the economy has stabilized over the past few months, a key White House adviser asserted Friday.

Unemployment is likely to rise in the months ahead, National Economic Council Director Larry Summers warned, as the full impact of the $787 billion economic recovery plan is not likely to be felt until 2010.

Nonetheless, he said, "We were at the brink of catastrophe at the beginning of the year, but we have walked some substantial distance back from the abyss."

Business and consumer confidence have increased, he noted, and there are indications that the country's gross domestic product "is on a close to level path with prospects for positive growth to commence during this year."

The national unemployment rate is currently 9.5 percent, with the recession now in its 18th month.

Summers made his remarks during an appearance at the Peterson Institute for International Economics, a non-partisan think tank focused on global economic policy.

Filed under: Economy • Larry Summers
soundoff (111 Responses)
  1. Right Leaning Independent

    Dems controlled congress for the last 2 1/2 years. Obama has been in office 6 months. Clinton changed the lending laws to allow ownership of homes by unqualified people. Barney Frank and the Dems ruined the economy for those of you that still believe it was Bush.

    July 17, 2009 03:37 pm at 3:37 pm |
  2. usualone

    Why are we hearing that some police jobs are being saved? Why are we hearing that monies are being poured into infrastructure such as roads? Seems to me that is a start of the stimulus package.

    The Republicans only put roadblocks into anything the NEW administration suggests. They never give us concrete solutions. They do want the Democratic White House to fail, at our country's expense.

    July 17, 2009 03:40 pm at 3:40 pm |
  3. Alice

    @ Mike: Unemployment is a lagging indicator. Retake ECON 101.

    July 17, 2009 03:42 pm at 3:42 pm |
  4. Too True For You

    Oh no – that ain't right – don't you listen to the republicans? It hasn't cleared up the godawful mess they left us all in the 5 months since Obama got it passed, so IT'S A FAILURE! Geez, what's the matter with you librul-lovin fact-quotin lefties?

    July 17, 2009 04:22 pm at 4:22 pm |
  5. Lary Craig

    It is working,as proved by Goldman Sachs and Bank of America's earnings and the stock market rallying.
    IAfter the Economy recovers,I wonder what the Repubs will use to attack Obama?

    July 17, 2009 04:22 pm at 4:22 pm |
  6. Four and The Door

    Okay, so the economy was in a mess before Obama took office. Nobody blames him for that. However, since he has been in office he has done as much a humanely possible to perpetuate the problem; Borrow, spend foolishly and tax until the economy is crippled for decades. It's not even funny...it's sad to watch.

    July 17, 2009 04:28 pm at 4:28 pm |
  7. mike in VA

    working where and for who Scott? No stim funds for 08 election red counties. FACT: Recessions work themselves out sooner on their own...without government involvment.. All this is nothing but Democrats' padding their re-election prospects.

    July 17, 2009 04:30 pm at 4:30 pm |
  8. skyhawkdriver

    Same old story..same old song and dance..after letting joe biden out in public unsupervised and having him say we need to spend more money it kinda makes you wonder who is watching the henhouse..perhaps wiley coyote??utter foolishness..exactly who has the rudder in this misguided ship of fools??I don't know about anybody else,but my pockets are empty..I already had to lay off people..and if this foolishness continues then I will close up shop..simple as that..barry the bumbler wants a welfare state and that is what he is going to get..all of you who voted for him I hope he shows up soon to pay your mortgage and fill your gas tank..that is why you voted for him..right?

    July 17, 2009 04:58 pm at 4:58 pm |
  9. yuri

    Opinions are deidedly divided as to the success or otherwise of the stimulus pacakage. If you ask Larry summers, Paul Krugman, and Peter Mororici, you 'll get 3 different opinions.

    July 17, 2009 05:34 pm at 5:34 pm |
  10. Here's a headline:

    Goldman Sachs Saves America...or America Saves Goldman Sachs- same thing!

    July 17, 2009 08:07 pm at 8:07 pm |
  11. Tatianna

    On 3/12/09, Obama told business leaders: Theyre not as bad as we think they are now. This stands in stark contrast to Obamas tone on 2/4/09 when he was forecasting economic Armegeddon if congress didnt give him everything he wanted immediately. Given that things are now, unlike in February, looking so rosy, how about we rescind the remaining stimulus funding. Obama and his cohorts were purposely talking down the economy to get his spendulous and their porkulous bills passed. Now thats done, theyll talk up the economy. Thats just shy of treason.

    July 18, 2009 11:30 am at 11:30 am |
1 2 3 4 5