The U.S. economy does not need a second fiscal stimulus package and the government should instead cut spending over the next two years, according to a survey of business economists. Most economists in the National Association for Business Economics (NABE) semi-annual poll were concerned about the outlook for the U.S. government budget. They also doubted health-care reforms proposed by the Obama administration would lower costs while increasing access and maintaining quality, reported Reuters. The government has stepped in with a $787 billion package of spending and tax cuts. Those actions left the economy with a $1.58 trillion budget deficit in fiscal 2009, and a shortfall of about $9 trillion between 2010 and 2019. While economists in the NABE survey acknowledged that the stimulus package had helped to brake the pace of the economy’s decline in the second quarter, only 35 percent viewed fiscal policy as being “about right”. Half of the respondents saw fiscal policy as excessive. About 266 members took part in the poll. “Fully 76 percent do not believe a second stimulus package is needed. Three-quarters responded that they would like to see fiscal policy become more restrictive over the next two years, but only 28 percent expect that it will be,” the NABE said. “In fact, the largest share, nearly 42 percent, expects fiscal policy to become even more stimulative than it is now.”
Economists: Second Fiscal Stimulus Unnecessary
Most economists in the National Association for Business Economics (NABE) semi-annual poll were concerned about the outlook for the U.S. government budget.
September 1, 2009