Evans Says U.S. Economy Will Keep Growing
Fri Jan 23, 4:03 PM ET
By DAVID McHUGH, AP Business Writer
DAVOS, Switzerland - The U.S. economy will keep growing and is just starting to add significant new jobs, Commerce Secretary Don Evans said Friday at an international economic forum.
"I think it's now becoming clear that the pro-growth monetary and fiscal policies that have been pursued in this economy ... for the past three years are working; they're taking effect," Evans told an audience of business leaders at the World Economic Forum (news - web sites) in this Swiss ski resort.
Evans' upbeat assessment came during a panel discussion on U.S. trade and budget deficits and the weakening dollar. Despite strong growth in recent months, U.S. companies have been reluctant to add new workers, raising concerns about the sustainability of the economic recovery — and whether it will be enough to help the rest of the world.
Growing U.S. budget and trade deficits are another source of worry, because they undermine the dollar, which makes it more difficult for exporters to sell their products at a competitive price in U.S. markets .
Not everyone agreed with Evans, however.
"Yes, growth is up but neither jobs nor wages have recovered. ... Everyone who isn't rich is living paycheck to paycheck," said John Sweeney, president of the AFL-CIO labor federation, told the audience. He noted that many jobs are moving overseas as companies seek to cut costs. |
