Saturday, December 18, 2010

U.S. dispute "the second round of stimulus".

<P> Whether the United States should implement the second round of economic stimulus plan? The problem is not easy to answer. .</ P> <P> Although the U.S. government officials still claim that in public, not to discuss the second round of economic stimulus proposals, but Obama has already begun around the think tank Open "naysayers." .</ P> <P> Protectionism will only add to the economic crisis, said that countries should work together to stimulate the economy and improve the financial regulatory system </ P> <P> 7 7, Obama economic adviser Laura Tyson .(Laura Tyson) said in a speech in Singapore in the first round of stimulus size is still too small, although the effect of the current apparent positive but not significant, the Government should consider the second round of economic stimulus plan related issues. .</ P> <P> reason why the second round of economic stimulus controversial because of the Bush administration signed the first funding round of economic stimulus package has not yet exhausted, but lawmakers appear to have been held more convincing - .- If we say that first round did not produce the desired effect, the second round of stimulus that does not appear to be necessary. .</ P> <P> for the Government, considering the original intention of the economic stimulus plan, the economy is back to normal, so that consumer recovery and ease unemployment pressure. .U.S. unemployment rate in June and then pushed to new, more likely to achieve double-digit year, these factors have become so pessimistic about the economic outlook. .</ P> <P> In this context, and then seek new strategies to increase the strength of demand does not seem unexpected. .So, if predictions come true, the U.S. economic stimulus plan to choose, what does? </ P> <P> first option is to carry out targeted tax breaks and subsidies for low-income or unemployed groups, such as policy .. .This may be the best option, for those wandering in the poverty line, consumers tend to be far higher than the consumption of the rich. .The aid money into poor communities is another important reason is to ease the increasingly intensified social conflict between rich and poor. .In a democracy the country, support for poor groups regardless of the ruling party or opposition parties can not be ignored. .</ P> <P> second option, that is, large-scale infrastructure construction. .Although the multiplier effect generated in this way more, but may not be as timely as the former is more. .Its advantage is that infrastructure can pull more jobs, which keep the unemployment rate hit a new high for the United States, seem more attractive. .However, the disadvantage of this approach are obvious, long cycle, slow effect, is less immediate. .</ P> <P> course, the U.S. government may have other selection method, for example, to distinguish between the companies in some sectors of the tax relief, or tax cuts be extended to all U.S. residents who, like the consumption tax reduction. .However, the crux of the former government and companies may need to negotiate in order to maintain employment as a necessary condition, so too are suspected of cross-boundary policy. .While the latter may be rising in the savings rate in the process, the effect is lost. .May the U.S. savings rate jumped to 6.9%, worth enough to sound the alarm. .</ P> <P> the above policy, the most likely choice is the first and second policy point of view, in effect, the former aimed at easing social conflicts, which would help to suppress the rise in unemployment. .</ P> <P> Of course, of the second round of economic stimulus plan too early, perhaps after the unemployment rate exceeded 10%, such as the fourth quarter of this year or early next year, the beginning of the debate can only see the outcome. .</ P>.

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