U.S. needs stimulus moves to avert "lost decade": ex-Treasury Secretary

12:28, June 14, 2011      

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The United States is now halfway to a lost economic decade, while the nation needs to take a series of bold moves to foster the sluggish economic growth, Lawrence Summers, former U.S. Treasury Secretary said on Monday.

"From the first quarter of 2006 to the first quarter of 2011, the U.S. economy's growth rate averaged less than 1 percent a year, similar to Japan in the period its bubble burst," he noted in an article carried on Monday's The Washington Post.

The recent data showed that the U.S. economic growth is losing momentum, argued the Harvard professor, cautioning that beyond the lack of jobs and incomes, an economy producing below its potential for a prolonged interval sacrifices its future.

A weak string of industrial production, job market and real estate market reports in recent weeks has sparked economic slowdown fears of the world's largest economy.

The former top economic adviser to U.S. President Barack Obama contended that the nation should beef up infrastructure investments, as the interest rates are low currently and construction unemployment rate is hovering around 20 percent.

He hails the administration's efforts of promoting exports and trade agreements, adding that the nation could further promote tourism, education, health services and adopt new economic stimulus moves to bolster economic growth and avert a "lost decade."

Source: Xinhua
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