News / Economy

Economists: US Must Do More To Cut Deficit & Debt

Senate Majority Leader Harry Reid (D-NV) speaks to the media after a closed door meeting with Senate Democrats and Vice President Joseph Biden, at the U.S. Capitol, on August 1, 2011 in Washington, DC.
Senate Majority Leader Harry Reid (D-NV) speaks to the media after a closed door meeting with Senate Democrats and Vice President Joseph Biden, at the U.S. Capitol, on August 1, 2011 in Washington, DC.

Economists say the new agreement to cut some U.S. spending and allow the government to borrow more money is just the first of many steps needed to solve the debt and deficit issue.

The agreement cuts around $1 trillion in spending over the next ten years and mandates a complex process intended to bring another $1.5 trillion in deficit reductions.

The head of the world's largest bond mutual fund says the agreement does not put a "significant dent" in U.S. spending next year.  Writing on the PIMCO company website, Bill Gross says it will take trillions of dollars in further deficit reduction for the United States to keep its top-level credit rating.  He says the government could depreciate the currency or use inflation to ease the burden of repaying the huge debt.

China's government, which holds trillions of dollars in U.S. debt, says the agreement is "good news" for the U.S. and global economies, but makes only a "small dent" in the nation's huge debt.  The commentary appeared on the government-controlled People's Daily website.  It urges Washington to "live within its means."  It says sharp budget cuts could hurt economic growth and raise unemployment in the short term, but are necessary for the health of the economy.  

An article in The Boston Globe, says national government spending cuts could raise unemployment and hurt the economy in Massachusetts, which has many military, medical, and educational institutions funded by Washington.

But other experts say the impact will not be felt for some time because the cuts over the next two years amount to tens of billions of dollars, a small percentage of federal government spending.  Deeper cuts are set for later years.

Some information for this report provided by AFP.

You May Like

In China, Mixed Signals on Ebola Controls

How authorities are monitoring at-risk individuals remains unclear, including whether there are quarantines for Chinese health workers returning from West Africa More

Video Women Voters Anxious Ahead of US Elections

Analysts say if women are focused on national security, it could be bad news for Democrats More

Solar's Future Looks Brighter

New technology and dropping prices are contributing to a surge in solar power More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Women Voters Anxious Ahead of US Electionsi
X
October 31, 2014 4:10 AM
Public opinion polls show American voters are deeply dissatisfied with their government and anxious about threats from abroad. This is especially true for a key voting group both Republicans and Democrats are trying hard to win over: women. Analysts say if women are focused on national security, it could be bad news for Democrats, with majority control of the Senate at stake. VOA’s Cindy Saine looks at the crucial role women voters will play in deciding the elections.
Video

Video Women Voters Anxious Ahead of US Elections

Public opinion polls show American voters are deeply dissatisfied with their government and anxious about threats from abroad. This is especially true for a key voting group both Republicans and Democrats are trying hard to win over: women. Analysts say if women are focused on national security, it could be bad news for Democrats, with majority control of the Senate at stake. VOA’s Cindy Saine looks at the crucial role women voters will play in deciding the elections.
Video

Video Victorious Secularists Face Challenge to Form Government in Tunisia

Official results from Tunisia show the Islamist Ennahda party has failed to win the second free election since the so-called "Arab Spring" uprising in 2011. Ennahda, which handed power to a government of technocrats pending the elections, lost out to the secular party Nidaa Tounes. Henry Ridgwell reports from London that the relatively peaceful poll offers some hope in a volatile region.
Video

Video Africa Tells its Story Through Fashion

In Africa, Fashion Week is a riot of colors, shapes, patterns and fabrics - against the backdrop of its ongoing struggle between nature and its fast-growing urban edge. How do these ideas translate into needle and thread? VOA’s Anita Powell visited this year’s Mercedes Benz Fashion Week Africa in Johannesburg to find out.
Video

Video Smugglers Offer Cheap Passage From Turkey to Syria

Smugglers in Turkey offer a relatively cheap passage across the border into Syria. Ankara has stepped up efforts to stem the flow of foreign fighters who want to join Islamic State militants fighting for control of the Syrian border city of Kobani. But porous borders and border guards who can be bribed make illegal border crossings quite easy. Zlatica Hoke has more.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video Kobani Refugees Welcome, Turkey Criticizes, US Airdrop

Residents of Kobani in northern Syria have welcomed the airdrop of weapons, ammunition and medicine to Kurdish militia who are resisting the seizure of their city by Islamic State militants. The Turkish government, however, has criticized the operation. VOA’s Scott Bobb reports from southeastern Turkey, across the border from Kobani.

All About America

AppleAndroid

World Currencies

EUR
USD
0.7893
JPY
USD
107.68
GBP
USD
0.6238
CAD
USD
1.1214
INR
USD
61.185

Rates may not be current.