By Steven K. Beckner
DENVER (MNI) – Jason Furman, deputy director of President Obama’s
National Economic Council, reiterated the Administration’s position
Monday that “we can’t afford to extend tax cuts for high income people.”
Furman, speaking at the National Association for Business
Economics’ annual convention, said that the administration’s policies
worked to “avoid a second Great Depression.”
Without Obama’s fiscal stimulus, as well as the Federal Reserve’s
emergency measures, he said unemployment would be about 16%.
As a result of those policies and the recession, the federal budget
deficit has ballooned to a record $1.4 trillion and spending has swelled
to some 24% of GDP. But Furman said the White House plans to reduce
spending as a share of GDP as the economy recovers.
From 10% of GDP, the federal deficit will return to 4% of GDP by
2015, he also said.
Furman disputed the contentions of some economists that extended
unemployment benefits lead to higher unemployment. Given that there are
four job seekers for every vacancy, he said that extended unemployment
benefits have a “small to nonexistent” impact on the unemployment rate.
In other comments, Furman said some “base broadening” will be part
of any future Obama “tax reforms.”
** Market News International **
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