February 28, 2011
TOO USEFUL A CRISIS TO LET GO TO WASTE:
Economists' biggest worry: Federal budget deficit (Chris Isidore, February 28, 2011, CNNMoney)
The survey results come as fierce debates are raging in Congress and in statehouses across the nation about how to address gaping budget gaps. There is a chance the federal government could even shut down without a budget deal, and public employee unions across the country are protesting proposed cuts at the state and local level.Posted by Orrin Judd at February 28, 2011 6:23 AMSome leading economists, including Federal Reserve Chairman Ben Bernanke, have argued that while deficits must be addressed, the economic recovery is still too weak to implement deep spending cuts or tax increases.
Despite the budget worries, the economists are more optimistic about growth than they were three months ago. They expect economic growth of 3.3% in 2011, up significantly from the 2.6% growth rate forecast in November.
And economists are less concerned about a double-dip recession.
