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

Obama: I Will Do 'Everything I Can' to Close Guantanamo

US president says prison continues 'to inspire jihadists and extremists around the world' More

Sierra Leone Educates on Safe Ebola Burials

Also, country is improving at rapid response to isolated outbreaks, but health workers need to be even faster, officials say More

Religion Aside, Christmas Gains Popularity in Communist Vietnam

Increasingly wealthy Vietnamese embrace holiday due to its non-religious glamor, commercial appeal 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.
US Decision on Cuba Underscores Divisions Among Miami Cubansi
X
Sharon Behn
December 19, 2014 9:34 PM
For decades, older, more conservative Cubans have been gathering at Café Versailles on the corner of Calle Ocho to eat Cuban food and talk politics. After hearing of President Barack Obama’s decision, a number of them gathered in front of the café with posters to protest. VOA's Sharon Behn reports on the situation.
Video

Video US Decision on Cuba Underscores Divisions Among Miami Cubans

For decades, older, more conservative Cubans have been gathering at Café Versailles on the corner of Calle Ocho to eat Cuban food and talk politics. After hearing of President Barack Obama’s decision, a number of them gathered in front of the café with posters to protest. VOA's Sharon Behn reports on the situation.
Video

Video Three Cities Bid for Future Obama Presidential Library

President Barack Obama still has two years left in his term in office, but the effort to establish his post-presidential library is already underway. The bid for the Obama Presidential Library is down to four locations in three states -- New York, Hawaii, and Illinois. As VOA’s Kane Farabaugh reports, each of them played an important part in the president’s life before he reached the White House.
Video

Video Cuba Deal is Major Victory for Pope’s Diplomatic Initiatives

Pope Francis played a key role in brokering the US-Cuba deal that was made public earlier this week. It is the most stunning success so far in a series of peacemaking efforts by the pontiff. VOA religion reporter Jerome Socolovsky has more.
Video

Video Fears of More Political Gridlock in 2015

2014 proved to be a difficult year politically for President Barack Obama and a very good year for the U.S. Republican Party. Republican gains in the November midterm elections gave them control of the Senate and House of Representatives for the next two years -- setting the stage for more confrontation and gridlock in the final two years of the Obama presidency. VOA National Correspondent Jim Malone has a preview from Washington.
Video

Video Sudan School Becomes Target of Aerial Attacks

The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video VOA Reporter Tours Devastated Peshawar School

Islamist militants wearing military uniforms and strapped with explosives attacked a military run school Tuesday in the northwestern Pakistani city of Peshawar. At least 141 people were killed in the horrific attack, most of them young students. VOA reporter Ayaz Gul visited the devastated school and attended the funeral of the principal who courageously tried to save her students from the deadly attack.
Video

Video Nigerians Fleeing Boko Haram Languish in Camp Near Capital

In its five-year effort to impose Islamic law in northeastern Nigeria, the Boko Haram extremist group has killed thousands of people and forced hundreds of thousands to flee. Some of those who ran for their lives now live in squalor on the edges of the capital, Abuja. Chris Stein reports for VOA.
Video

Video Aceh Rebuilt Decade After Tsunami, But Scars Remain

On December 26, 2004 there was an earthquake in the Indian Ocean so powerful it caused the Earth’s axis to wobble a few centimeters. Onshore on the island of Sumatra, the resulting tsunami was devastating. A decade later, VOA Correspondent Steve Herman reports from Banda Aceh, Indonesia, where although there is little remaining evidence of the physical devastation, the psychological scars among survivors remain.

All About America

AppleAndroid

World Currencies

EUR
USD
0.8143
JPY
USD
119.23
GBP
USD
0.6390
CAD
USD
1.1596
INR
USD
63.304

Rates may not be current.