Obama fears a double dip recession because of people losing confidence in the US economy because of the surging national debt. At the same time he says we need to have to spend our way out of the recession and dangles the prospects of tax incentives to spur hiring. Either there is an internal inconsistency in his approach (to put it kindly) or he thinks there is a tipping point regarding the debt and that the tipping point has not yet been reached.
The president, who is in Beijing as part of his tour through several Asian countries to address economic challenges, spoke candidly about the precarious balancing act his administration is trying to perform. He wants to spend money to kick-start the economy, but at the same time is in danger of creating too much red ink.
“There may be some tax provisions that can encourage businesses to hire sooner rather than sitting on the sidelines. So we’re taking a look at those,” Obama told Fox News’ Major Garrett.
Thanks to John for the heads up.
