Spence Says U.S. Recovery Will Take ‘Several Years’

[The Northerner]

March 10 (Bloomberg) -- The U.S. faces an extended recovery from the recession even after the government infusion of cash into stimulus programs and the banking system, said Andrew Michael Spence, a Nobel laureate in economics.

“Right now the expectations are that somehow the government can magically restore the economy to balance,” Spence said in an interview today on Bloomberg Radio. “A more realistic view is it’s going to take several years.”

Federal Reserve Chairman Ben S. Bernanke said last month the economy is in a “nascent” recovery that still requires low interest rates to encourage demand by consumers and businesses once federal stimulus fades. Economists surveyed by Bloomberg News predict growth of 3 percent this year and next following a 2.4 percent contraction in 2009, which was the worst performance for a single year since 1946.

“Diminished consumption” in the U.S. will be a drag on world growth, Spence said. “It’s very hard to progress on some global issues without a very strong America,” he said.

The U.S. government should focus on support for the unemployed “over a more extended period” to bolster consumer confidence and spending, he said.

Read more: http://www.bloomberg.com/apps/news?pid=20601068&sid=a_yKsEoR3464

[Tierra_y_Libertad]

1. No shit. A Consumer economy without consumers will take more than years to "recover".

There's no good end to this non-recovery. Unless anyone thinks a lower standard of living is "recovery".

[rfranklin]

2. If job creation of the past ten years is a guide...

we'll be at 30% unemployment by the time this "recession" is over.

[Mari333]

3. allrighty then, lets get those people out there consuming

oh wait a minute. there are no jobs . gas prices are on the rise because of greedy speculators. we are paying out the ass for 2 illegal occupations. we may be forced to buy expensive ridiculous mandated health insurance. sales taxes all over the country are rising. we have no expendable income and can barely feed our kids. people are living in fucking boxes trailers and tents.

oh gee whiz I guess we cannot consume goods!

what planet do economists live on again?? thats right, the same goddamned planet that congress lives on

[cutlassmama]

5. +2000

[FBaggins]

4. "Several years" I can live with...

...when it appears that the alternative may be "will not recover."

Not that either is helpful from a political perspective.