Sunday, September 18, 2011

Google Chairman: Economy Needs Stimulus, Not 'Ludicrous' Spending Cuts

Google CEO gets it right on ABC's This Week:

"Google chairman Eric Schmidt today said the current economic strategy of cutting spending during a slow economy is "ludicrous," and pushed for greater government stimulus to generate demand.

The political wrangling between Republicans and Democrats have left business leaders with no certainty on economic policy, and said what is needed to encourage companies to hire more workers are "predictable, long-term plans."

"The economy is, today, stuck behind the power curve. It needs a lot of encouragement," Schmidt told "This Week" anchor Christiane Amanpour. "It needs not just something like the jobs bill, but also significant government stimulation in terms of buying power and investment. Otherwise, we're set up for years of extraordinarily low growth in the economy and no real solution to the jobless problem."

When asked if he saw "any possibility of a climate for more stimulus," Schmidt responded, "that's a political question. But the current strategy is ludicrous."

"You have a situation where the private sector sees essentially no growth in demand," Schmidt said. "The classic solution is to have the government step in and, with short-term initiatives, help stimulate that demand. If they do it right, they'll invest in income and growth-producing things, like highways and bridges and schools, new opportunities for the private sector to go then build businesses."

No comments:

Post a Comment