Obama: G20 Will Prepare World for Recovery

German chancellor emphasizes friendship, but opposes stimulus

(NEWSER) - Angela Merkel stresses that she is a friend of the United States and wants Washington to play "a strong role in the world"—but ahead of the G20 summit this week, the German chancellor has emerged as the strongest and most unwavering opponent of Barack Obama's call for a global stimulus. In an interview with the New York Times, she once again refused to support any further deficit spending, and she called on Obama to beware growing American debt. More»

Protections for workers put in place long ago may lessen the need

(NEWSER) - Ahead of next week's G20 summit, the US and Europe are engaged in a major dispute over the best way to end the global recession: Washington wants more stimulus, while Germany and other EU nations say they've done enough. One overlooked factor in the debate, writes Nicholas Kulish in the New York Times, is generous social legislation that has cushioned the blow of unemployment. "In contrast to America, our social systems are not on the decline right now," Angela Merkel said last week. More»

(USER SUBMITTED) - Jim Surowiecki, writing for the New Yorker, says that the Obama stimulus package worked surprisingly well. Yet, Surowiecki notes, Obama gets little credit for it because he did the economically, rather than politically, expedient thing. Rather than lump-sum tax rebates, which consumers tend to horde, he gave taxpayers a small break in every paycheck, which they spent—stimulating the economy. By giving money to the states to retain jobs, rather than create new ones, he maintained stability and reduced unemployment. More»

Team searches for ways to bolster economy

(NEWSER) - With economic recovery looking sluggish at best , President Obama is considering a national infrastructure program, alongside a wave of tax cuts for businesses and individuals. Up for discussion are additional tax cuts for small businesses, a possible payroll tax cut for businesses and individuals, and other tax breaks aimed at encouraging businesses to hire, sources tell the Wall Street Journal . More»

Spending cuts could send economy plummeting again

(NEWSER) - The world's top economies are all talking about tightening their belts, and in so doing risk repeating the mistakes of the 1930s, writes David Leonhardt of the New York Times . When President Roosevelt tried balancing the budget in 1936, it plunged the recovering country back into depression. But austerity enthusiasts argue the more stable modern financial system, coupled with growth from the developing world, will allow the economy to avoid a repeat performance. More»