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Non-Tech : Auric Goldfinger's Short List -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (8385)	10/29/2001 8:52:17 PM
From: RockyBalboa	Respond to of 19428

What happens if the money is being spent and blown up in the air? >>>>>>>>>>>>>>>>> W. House's Lindsey says V-shaped recovery likely-CNBC Reuters Markets News - October 29, 2001 20:46 NEW YORK, Oct 29 (Reuters) - White House economic adviser Lawrence Lindsey told cable network CNBC on Monday he "increasingly" believed that a robust, "V"-shaped U.S. economic recovery would take hold next year and a proposed economic stimulus package would go a long way toward spurring growth. "I think more and more economists are moving toward a very sharp recovery during next year. That will be especially true if that fiscal package gets through the Senate," Lindsey said. The House recently passed a Republican-backed bill by a slim margin that calls for injecting $100 billion into the economy over the next year through capital gains tax relief and repealing the corporate alternative minimum tax. The package has moved to the Senate, with Republicans there trying to trim down the package to within a $75 billion limit urged by President George W. Bush. Senate Democrats want the stimulus to be spent on infrastructure projects and expand unemployment benefits and health insurance subsidies for laid-off workers. The two parties have been trying to put together a bipartisan package that can pass the closely divided, Democrat-led Senate. Lindsey said the spending package, along with the $38 billion in tax rebates earlier in the year and the already approved $40 billion for defense and reconstruction, would provide "a very, very powerful amount of impetus behind the economy sometime in the middle of next year." Lindsey has recently declined to reiterate remarks made earlier in the month that the economy would shrink in the third and fourth quarters -- meeting the common definition of a recession. When asked about prospects for future budget deficits, Lindsey said the United States has always "financed wars with deficit spending." "This time we may or may not have a deficit. I don't know," Lindsey said, paraphrasing former U.S. president Franklin D. Roosevelt as saying "the right fiscal policy is the one that wins the war." "That's as true now as it was back then," Lindsey said. Earlier on Monday the government said the budget surplus shrank to $127.17 billion in 2001 from $236.92 billion a year earlier, forcing the government to tap the Social Security surplus. It was the first deterioration in the budget since 1992. Many forecasters believe increased government spending and falling tax revenues due to the economic slowdown will lead to a budget deficit in fiscal year 2002, which runs through September next year.