Bush to outline emergency boost for US economy

US News

Jan 18, 2008, 16:44 GMT

Washington - President George W Bush planned Friday to outline emergency measures to boost the flagging US economy, focussed on hopes that consumer spending can help avoid a recession. Traders and Specialists work on the floor of the New York Stock Exchange in New York City USA, 18 January , 2008. Stocks opened higher today on news of a stimulus plan offered by President Bush after a three percent decline in the stock prices yesterday. EPA/PETER FOLEY

Traders and Specialists work on the floor of the New York Stock Exchange in New York City USA, 18 January , 2008. Stocks opened higher today on news of a stimulus plan offered by President Bush after a three percent decline in the stock prices yesterday. EPA/PETER FOLEY'There's an urgent need,' Treasury Secretary Henry Paulson, the top US finance official, told NBC television. 'The president is going to be putting forward a broad outline, principles, ideas.' Speculation about possible measures has focussed on short-term tax relief in hopes that Americans will spend the extra money. White House spokesman Tony Fratto said Bush's proposals would include tax steps. 'We want to see a broad-based effort that will help all businesses and consumers to continue to enjoy the benefits of this economy,' he said. 'The long-term prospects for this economy are sound.' Tumbling stocks on Wall Street, high oil prices, rising unemployment and the collapse of a real-estate bubble have cast gloom over the US economy. Some economists believe the US is already in recession, but Paulson insisted the nation is headed only for slower growth. The Bush administration has been working with Congress to put together an economic stimulus package that could be passed into law quickly. US stocks, which have plunged since January 1, opened higher Friday. 'A big part of the programme should be focussed on consumers,' Paulson said. Consumer spending accounts for about two-thirds of the US economy, the world's largest. The economy grew at a nearly 5-per-cent annual rate in the third quarter of 2007, but economists believe it slowed sharply in the last three months of the year. Bush had been expected to present his economic stimulus ideas in his January 28 State of the Union speech, but the Democratic-led Congress stepped up calls for action while Bush was abroad on a Middle East trip last week. 'We have an opportunity to do it sooner and the president sees no reason to wait for' the annual policy speech, Fratto said. Bush wants to take 'actions quickly that will give a boost to our economy as soon as possible this year,' Paulson said. The flagging economy risks clouding Bush's last year in the White House before his term ends next January. Recession fears are also rippling into the 2008 presidential election campaign as Democratic and Republican candidates jostle to present plans to bolster the economy. US Federal Reserve chief Ben Bernanke backed short-term government action to boost the economy Thursday. Independently of the administration, the central bank is expected to cut US interest rates further when it meets in late January. Lowering the cost of borrowing can spur investment and consumer spending. © 2008 dpa - Deutsche Presse-Agentur

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Whoa Nellie!Jan 18th, 2008 - 20:17:36

My local news station reported this morning that the money Bush is going to hand out, has been tentatively reserved for individuals who make $85,000.00 a year, and couples who make $110,000.00 and above. Please tell me he's not going to hand out freebies to the wealthy! If he wants people to take this money, and go spend it, give it to the middle class and the poor!! I would love to go on a shopping spree at the mall with that money. I need new jeans and boots but can't afford it after the mortgage payment. Why should the people who are already spending money on themselves get even more? I hope this isn't the truth.

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wellJan 19th, 2008 - 02:20:20

of coarse it's for the wealthy.
who else?

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SP4: 'heloo?'Jan 19th, 2008 - 21:00:09

'...whah yeees, this is th Prez i dent....oh!....heloo congressmahn Rangel...what...what?...talk slowah congrissman.....whats all th hubub aboot? Yesss...ah saw th papahs...an th TV...yeees...ah saed thit...nooo...ah wazn't kiddin...congrissman...do ah evah kid?.....remebah thit little thing called I raq?....ya do...gooood! Noow...do ah look kahke th kiddin tahpe? Nooo...ah din't think soo...'

'n'congrissman...settle dooown an listen....y' tax increeses ar aboot as populah as sheeit on a prom dress anyways....n' way thims gonna hep ya git ee lected....givin dollahs gits ya sum...takin thim don't....trah an remembah thit...wel...outsahde o New York anyways.....

'n congrissman, jes run up t' ol Hirry Reid...yeah him...nooo...he don't reallah hate me...it's all an act...ol Hirry an I are buds...yeeees, I'll make ya th sahme deel...y' cin pick on me al ya want..yeees his constituants lahke it too!....an thin you an I cin git sumpin done...an I'll hep ya too boyh!...oh...sorrah...ah keep fergittin thit don't sound good t ya...but I'll hep anyways...git ya sum commerce zones...sum urban growth funds...th works! Nancy Pelosi...no...don't worry aboot her neithah, she's on th payroll too....nahce figyah on thit one, don't ya think?'

'N' git out thire an git er done congrissman....Ol GW's on th job fer ya!'

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PperfectJan 20th, 2008 - 18:46:31

It is a shame that a person who has failed in business as many time as GWB is now trying to fix this mess. This is GWB and the Republican'ts mess, now the guy who has had a problem balancing his own checkbook, and who spends like no President in history is going to try and solve this problem. God help us!

We all know he is going to make it worse. The economy will only get on the road to recovery when this fool is sent back to Crawford. Maybe there he can help balance the books of the local dog groomer.

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