White House Chief Economist: Let the Bailout Work
In what might be a preview of a tough partisan battle ahead, the Bush administration’s chief economic adviser said Thursday that the Wall Street bailout (the
Jul 31, 2020108.4K Shares1.8M Views
In what might be a preview of a tough partisan battle ahead, the Bush administration’s chief economic adviser said Thursday that the Wall Street bailout (the Troubled Asset Relief Program, or TARP) is “the appropriate” strategy to address the nation’s sputtering economy.
Congressional Democrats are hoping to move a new stimulus package next month that would create jobs through vast new infrastructure spendingand help for states. But speaking to reporters, Edward Lazear, chairman of the Council of Economic Advisors, seemed to reject that strategy:
“„We believe the appropriate stimulus right now is the $700 billion stimulus that comes in the form of the TARP. That’s a huge amount of money, and we believe that it’s targeted at exactly the right thing.
Lazear’s comments came just hours after the Commerce Dept. announcedthat the nation’s economy shrank by 0.3 percent in the third quarter. The news did little to discourage his belief that thawing the credit freeze would alone right the economy.
“„What we’re seeing in terms of consumption and some of the other things that you mentioned are actually the symptoms. The cause is the credit market difficulty, and we think that it’s important to get at that directly. So we believe that the $700 billion TARP will be the right way to do it.
Who said the partisan fireworks would end Nov. 4?
Rhyley Carney
Reviewer
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