By Courtney Ann Jackson-Talk Radio News Service

The economy is far from healthy according to Christina Romer Council of Economic Advisers Chair, but the adviser is still optimistic over the effectiveness of the American Recovery and Reinvestment Act.

“We are urging serious medicine for serious economic problems. If we can accomplish these important changes we will not only come through the current crisis, we will emerge even stronger and healthier than before.” said Romer Thursday at an Economic Club of Washington event.

The Recovery Act provided $787 billion of tax cuts and government spending. Romer said that makes it “the boldest counter cyclical fiscal stimulus in American history.” She noted that the economy was deteriorating rapidly when President Obama announced his economic team just before Thanksgiving.

While the plan has garnered a substantial amount of controversy, Romer pointed to the use of fiscal stimulus to help weak economies by past presidents including Dwight Eisenhower, Gerald Ford, and George W. Bush.

“In the past few months, some have tried to portray fiscal stimulus as an exotic tool with a questionable pedigree,” said Romer. “To use a medical analogy, fiscal stimulus is a well-tested antibiotic, not some new-fangled gene therapy.”

She said the effects of the Recovery will increase over time and they expect the fiscal stimulus to be “roughly $100 billion in each of the next five quarters.” Initially the stimulus was focused more heavily toward tax changes and state fiscal relief, but there will be more direct government investments as it continues.

“The President aimed for a package that was large and got good employment bang for the fiscal buck,” said Romer.

Christina Romer, Chair of the Council of Economic Advisers, says the Obama administration is urging “serious medicine for serious economic problems.” She says if the U.S. may not only make it through the current crisis, but could emerge “even stronger and healthier than before.” (0:14)

 

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By Courtney Ann Jackson-Talk Radio News Service

Senate Democrats are pushing to get a health care reform bill moving forward and closer to passage. Senator Chris Dodd (D-Conn.) and Senator Patty Murray (D-Wash.) held a press conference Wednesday to discuss the Senate Health, Education, Labor, and Pensions Committee’s efforts to improve the healthcare system. Dodd is leading the committee’s mark-up of the health reform bill and said over 200 amendments to the bill have been made in the past five days.

The Senators appeared in front of an ambulance that featured the words “Pass Health Care Reform.” The ambulance from Families USA included a ticker of the number of families losing health care coverage.

“The present situation on health care is not just unacceptable, it’s unsustainable from an economic standpoint. You cannot have as much of our gross domestic product be consumed by health care costs [that are] mounting everyday in this nation and expect our economy to thrive and prosper in the years ahead. This is the issue that makes our economic recovery, in the long term, the most difficult,” said Dodd.

Murray said reform is not just for the uninsured since families with health care coverage are having to pay for those without. The current system is not working, according to Murray, who assured that Congress will “do what’s right for America.”

Dodd said he would like to have the bill out of the committee before the Senate’s July 4th recess, but noted that doing so may pose a challenge.

“I would love to complete all of it but realistically it may be impossible to get all of that done,” said Dodd. “I hope during the 4th of July break what we have done already could be melded with what the Finance Committee is dealing with so they don’t lose the opportunity of time over the following week.”

Sen. Chris Dodd (D-Conn.) says the current situation of the health care system is unacceptable, particularly from an economic standpoint. He said that this issue is vital to restoring the U.S. economy. (0:21)

 

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Treasury Secretary Timothy Geithner explains what the current administration is doing to get the economy back on track. (0:37)

 

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By Courtney Costello- Talk Radio News Service
Dr. Robert Moffit, the Director of the Heritage Foundation’s Center for Health Policy Studies, described how new health care insurance initiatives would only hurt families in these economic times. He also mentioned that keeping health insurance privatized would be the best solution. (1:10)

 

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By Courtney Ann Jackson-Talk Radio News Service

The Recovery Act is doing just as its name promised, according a press conference Wednesday from the office of Vice President Joe Biden. Biden released his first of a series of quarterly reports to President Barack Obama Wednesday morning.

In an on background conference call, a senior administration official from the Vice President’s Office said the American Recovery and Reinvestment Act has shown “early progress providing immediate financial relief for American families.”

The recession has been broad-based, causing unemployment to rise across the country. However, the Recovery Act has been responsible for creation of 150,000 new jobs so far, across all 50 states, including those in areas where it is most needed. “There are programs targeted to specific high unemployment
areas,” the official said.

The report discussions on state fiscal stabilization funds highlights Wisconsin’s application. It is is a good example of how states are “ramping up,” according to the official.

“The report find the anticipated funds are already having an effect on economic and job growth as private sector companies step up to meet expected demand for their projects under the act and state governments adjust their spending plans and they expect to received additional funds,” the
official said.

By Michael Ruhl, University of New Mexico – Talk Radio News Service

Correspondent Michael Ruhl’s investigative report into the recent pandemic of piracy off of the Horn of Africa. The report focuses on why the piracy is taking place and what can be done to stop it. It includes perspectives from Somali Ambassador-at-large Abdi Awallah Jama, George Mason University Political Science Professor Hazel McFerson, Maersk-Alabama Captain Richard Phillips, and CENTCOM Commander General David Petraeus. (07:30)

 

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By Kayleigh Harvey – Talk Radio News Service

At a House Joint Economic Committee Hearing today, Dr. Christina Romer, Chair of the Council for Economic Advisors, was asked by Congressman Vic Snyder (D-Ark.) “How should we view the added uncertainty in the economy both here and abroad that may be created the threat of a major health flu pandemic around the world?” Dr. Romer said the costs at this stage were “uncertain,” adding the priority of the administration was to “save lives.”

 

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By Kayleigh Harvey – Talk Radio News Service

A hearing on the economic outlook turned to swine flu today and raised the question “are we ready to cover the costs?”

Dr. Christina Romer, Chair of the Council for Economic Advisors, came to the House Joint Economic with upbeat news that, “during the first one hundred days if the Obama administration…the Recovery Act has already saved or created about 150,000 jobs,” said Romer. Adding “that most of the benefits of the Recovery Act are yet to come… our
estimates remain that the American Recovery and Reinvestment Act spending will create or save 3.5 million jobs before the end of next year.”

This information was over-shadowed however when Congressman Vic Snyder (D-Ark.) turned the topic to the developing outbreak of swine flu. He asked Dr. Romer, “How should we view the added uncertainty in the economy both here and abroad that may be created the threat of a major health flu pandemic around the world?”

Romer said that swine flu was of “major concern” to the administration. In terms of the economic effects caused by a swine flu pandemic, Romer said effects would depend on “how severe it is,” and that they are working on collating information concerning the swine flu outbreak. At the moment the true cost factor looked “uncertain,” said Romer.

Adding to her point Romer said, “uncertainty is probably the biggest effect at this point. Whether it will make consumers nervous. Whether it will, you know, government will have to take actions, that unfortunately will have economic consequences, that is what we are facing.”

Closing on this topic Romer stressed, that the top priority of the administration was to, “do whatever it takes to ensure that lives are saved.”

The cost of the swine flu pandemic to the American citizen remains unknown until the severity of the outbreak unveiled.