Obama Adviser: U.S. Can Afford Big Stimulus Plan

Money News
1/26/2009

One of President Barack Obama’s top economic advisers says the nation can afford to spend hundreds of billions of dollars in an attempt to jump-start a weak economy. But Larry Summers warns that fiscal discipline will be necessary once the economy recovers.

He says the government must spend money now to revive an economy that shed more than 2 million jobs last year. An $825 billion package of government spending and tax cuts is working its way through Congress. It would be the largest economic stimulus package ever enacted.

Even without the new proposal, the federal budget deficit is above $1 trillion this year.

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