'Obama econ. policy hinders progress'
Thu Jan 12, 2012 5:42PM
Interview with Rollin Amore, US economist
A fresh study says about 10 million more Americans joined the poor in the country between 2006 and 2010, with the number of the poor set to rise due to slow economic recovery.
The number of the US citizens living in poverty increased to 46.2 million in 2010, up 27 percent from 36.5 million in 2006, the year before which the recession began, showed a study by Indiana University, which was released on Wednesday.
Press TV has conducted an interview with Rollin Amore, a US economist in Washington, to further talk over the issue. Below is the transcription of the interview:
Press TV: Quite a scary pictures this all paints for the future of the US economy, why haven't government initiatives worked so far in helping put Americans back to work?
Amore: I think what we are seeing here, consistent over the last three years, is the economic policies of the Obama administration has flown in the face of what has worked previously. Instead of lowing taxes and relieving regulatory burdens, we have had the opposite happen.
What you are seeing is economy that stalled; it stalled by a government that is just too intrusive and just too large. We have proven this time and time again. Every time that we have relieved a regulatory burden in taxes such as 1980, we unleashed almost thirty years of strong economic growth.
Press TV: 'Change' is a word that Obama-the-candidate threw around a lot. Is this crisis beyond him? Is it more a system-based issue rather than something one lone president can stem?
Amore: No, I do not believe that at all. There has been a lot of change. Unfortunately, the change has been a detriment to business in the United States. The United States is a capital-based economy. It is run by mom-and-pop businesses. Ninety percent of the economy is run by that.
When you consistently put obstacles in front of them; you consistently demonize them, they do not invest; they do not hire new people; they do not have new products; they do not expand markets; they do not open new businesses and economy stall. This is not beyond the president; this is directly as a result of the president's policies and his administration.
Press TV: So then how do you assess the Republican candidates approaches on the economy, and how best to deal with the current crisis facing the US?
Amore: I think most of the Republicans are on a similar theme. They are going back and saying, hey, what is worked in the past in this country and what has worked well. In fact, the best has always been cutting taxes and relieving regulatory burdens. We saw it in the Kennedy administration in 1963; we saw it in the Reagan administration in 1980 and believe it or not, we even saw it in the Bill Clinton administration in 1996 when Congress was retaking then by the Republicans and we had our first balance budgets in many years.
But every time, every single time, that this formula has been put in place, the economy has responded positively. The Republican candidates know this; they understand this and they are all preaching the theme that is variant of this as they go forward and it may have a lot of appeal for the American people.