Lower wages Stimulate the Economy?

Discussion in 'Politics' started by carpro, Feb 19, 2009.

  1. carpro

    carpro
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    http://www.cnsnews.com/public/content/article.aspx?RsrcID=43704

    Obama’s Stimulus Will Cause 'Lower Wages' for American Workers, Says Congressional Budget Office
    Wednesday, February 18, 2009
    By Fred Lucas, Staff Writer

    (CNSNews.com) – The huge economic stimulus package that President Obama signed into law Tuesday will result in “lower wages” for American workers, according to the Congressional Budget Office (CBO).

    The CBO analysis, dated Feb. 11 and sent to Sen. Judd Gregg (R-N.H.), says the $787-billion plan will increase employment in the short-term, but will run up deficit spending which will “crowd out” private investment in the economy in the long-term.

    The analysis concludes that the stimulus will put downward pressure on Gross Domestic Product (GDP) and wages after 2014. (The Gross Domestic Product is the total value of all goods and services produced in the United States in one year.)
     

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