Speaking to the Peterson Institute Friday, White House economic advisor Larry Summers said “the American economy is again in progress.”
Summers detailed the efforts of the Obama Administrations stimulus package and discussed the progress made so far saying, “The distance we have traveled these past six months is remarkable.”
Referring to the economic state at the start of the year as a “free-fall” with no clear end in sight, Summers discussed the intended outcome for the stimulus plan and the future of U.S. markets.
Many Republicans are criticizing the $780 billion economic stimulus package, saying it has had little to no impact on the economy. Much of the stimulus has yet to be spent and won’t be until next July, Rep. Scott Garrett (R-N.J.) told FOX Business.
Although employment is a big concern right now, Summers stated that “contrary to a significant amount of commentary, this does not provide a basis for concluding that the Recovery Act is falling short of its goals."
The Obama Administration is hopeful that a rise in gross domestic product will lead to an increase in employment and spending, and therefore boost the economy to help pull the U.S. out of recession.
Summers also said the American economy needs to be restructured to become “more export-oriented and less consumption-oriented,” “more environmentally oriented and less fossil-energy-oriented,” “more bio- and software-engineering-oriented and less financial-engineering-oriented,” “more middle-class-oriented and less oriented to income growth that disproportionately favors a very small share of the population."
In order to attract future investors, America must prove that federal debt is under control and reassure businesses that the United States remains the most competitive market, Summers added.
Summers reiterated that a recovery could not take place overnight, and that only time could show the success of the stimulus package.
“Confidence and hope are returning as a program of rebuilding the economy moves forward,” he said.=
FOXBusiness.com’s Week in Review: July 6-10, 2009Don’t let summer’s laze reach your wallet
