July 19th, 2009
11:22 AM ET
12 years ago

Orszag: 'We've stepped back' from economic 'free fall'

[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2009/images/07/19/art.orszagwall0719.cnn.jpg caption="White House Budget Director Peter Orszag said Sunday that unemployment will lag behind the rest of the economy once the economy begins to turn around."]
WASHINGTON (CNN) – White House Budget Direct Peter Orszag said Sunday that the struggling economy has backed away from the precipice it was teetering on late last year but a return to economic growth has not occurred yet.

“Where we are is the sense of free fall that we had back in December . . . we’ve stepped back from that precipice but we’re not yet in the growth zone,” Orszag said on CNN’s State of the Union. “Most private sector forecasters are suggesting that won’t happen till later this year.”

Orszag also said Sunday that unemployment – now approaching 10 percent nationally – could take some time to turn around.

“Unemployment will lag somewhat,” Orszag told CNN Chief National Correspondent John King, as the economy begins to turn around later this year.

“Firms - usually even after the economy begins to pick up again – they still remain reluctant to hire people for some period of time. So, the unemployment rate is going to remain elevated – too elevated and there are too many people who are suffering – for some period of time.”

“It’s going to take some time to work our way out of it,” Orszag also said.

Filed under: Economy • Peter Orszag • Popular Posts • State of the Union
soundoff (80 Responses)
  1. Hugo

    Isn't it amazing how right before this Health care bill our economy has made this miraculous stop of the downward spiral? If you listen to this propaganda and believe it then you probably also believe that the Obama team knows more than the CBO does regarding cost. I am nearly convinced now that the Obama Administrations intent is to totally destroy our way of life to indoctrinate this Change that only they understand. I thought the Change they were speaking of was taking some of the corruption out of our government, Chicago politicians, what was I thinking? This last commercial with Obama trying to use fear to intimidate the Senate and House to pass this crap was the true revealing moment. Where is the call for tort law reform to truly assist in fixing the broken system? Regulate how much the lawyers can sue for and the system will fix itself!

    July 19, 2009 03:13 pm at 3:13 pm |
  2. Hugo

    prezpres-your post is about as coherent as your writing skills.

    July 19, 2009 03:16 pm at 3:16 pm |
  3. jaye

    Thank you President Obama!!!!!

    July 19, 2009 04:13 pm at 4:13 pm |
  4. renea

    First of all my confident is not in my job because jobs comes and goes neither is my confident in President Obama No my confident is in GOD. I know how it feels to be without a job and have to look to the governorment for help with unemployement and other needs. But i would also like to say i think this president is doing an outstanding job even though some may not see it that way but thats ok. I Thank GOD for this president because amoungst all the criticism,he still fight for what he believe. And i pray that God will lead him with the wisdom he needs to get this country back on track, thats the key to this country getting back on track PRAYER! NOT COMPLAINING.

    July 19, 2009 04:23 pm at 4:23 pm |
  5. Marc

    Va Womyn – They have to say it, with the Republicans trumpeting that they are failing over and over and over again (instead of coming up with any reasonable solution) they have to work and remember why things are not changing for the good on amonthly basis...

    July 19, 2009 04:29 pm at 4:29 pm |
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