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WEDNESDAY, NOVEMBER 25, 2009
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14

Economy 'Back From the Abyss:' Summers

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(Newser) – President Obama's top economist is confident that swift action by the administration averted disaster, ABC News reports. “We were at the brink of catastrophe at the beginning of the year,” Larry Summers says, “but we have walked some substantial distance back from the abyss.” Summers credits the recovery to the two-tiered plan that moved quickly to stabilize the financial system while simultaneously preparing for future growth.

“First, the most immediate priority was to rescue the economy by restoring confidence and breaking the vicious cycle of economic contraction and financial failure,” Summers says. “Second, the recovery from this crisis would be built not on the flimsy foundation of asset bubbles but on the firm foundation of productive investment and long-term growth.” Even Summers is in awe of the progress: “The distance we have traveled these past six months is remarkable.”

Larry Summers, chairman of the White House National Economic Council.
Larry Summers, chairman of the White House National Economic Council.   (AP Photo)
National Economic Council Director Lawrence Summers.
National Economic Council Director Lawrence Summers.   (AP Photo)
President Obama and his economic team: Council of Economic Advisers Director Christina Romer, Treasury Secretary Timothy Geithner, and Director of the National Economic Council Lawrence Summers.
President Obama and his economic team: Council of Economic Advisers Director Christina Romer, Treasury Secretary Timothy Geithner, and Director of the National Economic Council Lawrence Summers.   (AP Photo)
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Substantial progress has been made in rescuing the economy from the risk of economic collapse that looked all too real six months ago. - Larry Summers

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14 comments
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doingtherightthing
Jul 17, 09 12:57 PM CDT
the man lies.............what boggles my mind is that people will by into this crap from the white house.........there selling the fact that Obama is doing a good job with the economy.....unemployment at 9.5% and still rising..........the economy can't recover as long as its being taxed beyond its means.........the smart people can see this.......this economy has not hit bottom yet.... guard your own monies.......big taxes coming soon.......a national sales tax is coming next..watch'n'see....... Reply
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freethemall
Jul 17, 09 1:35 PM CDT
Yeah! We need more tax cuts for the wealthy! Supply side economics promoted by GWB and the GOP was working great. Then Obama got elected, and the economy went into the crapper!
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RaptorFan
Jul 17, 09 1:54 PM CDT
This whole argument that trickle down economics doesn't work is entertaining. How can one not make the connection that if you take money away from someone (i.e. increase marginal tax rate to 45% as proposed for top earners), they will spend / consume less and that's not good for jobs and everyone else? The only people who benefit from 45% marginal tax rates are lawyers and accountants as the rich explore exotic ways to avoid taxes and shelter assets.
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Alexandria
Jul 17, 09 2:22 PM CDT
Wow you're so...wrong. Apparently you forgot about when Clinton was president and we had a surplus of money, not a deficit that resulted from a Republican president who had no idea what he was doing.
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freethemall
Jul 17, 09 3:27 PM CDT
Thanks for the response C-K. I feel special, since very few provoke a response from you. I'm wondering what 30 year period you speak of. Lets see, Reagan was elected in 1980. Thirty years later would be 2010. Oh well, perhaps you misspoke. I can't say I never have. I'll just say this: The Clinton economic package that passed in the House of Representatives by one vote, with no Republican in favor of it, resulted in the economic boom of the 1990's, that resulted in the balancing of the federal budget, for the first time in decades, was predicted by Rush Limbaugh, in a Playboy interview. to be disastrous failure. He was mistaken about that, as he has been mistaken about so many other things. Just as you and your fellow wing nuts, who take your cues from Rush Limbaugh and his imitators, are so often mistaken.
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