Bush calls for multi-billion dollar economy boost
President George Bush today called for $145bn (€99bn) in tax relief to be injected into the sagging US economy and fend off a possible recession.
Mr Bush said that to be effective, an economic stimulus package would need to roughly represent 1 per cent of the gross domestic product, the value of all US goods and services and the best measure of the country’s economic standing.
White House advisers said that would amount to around $145 which is along the lines of what private economists say should be sufficient to help give the economy a short-term boost.
“Letting Americans keep more of their money should increase consumer spending,” Mr Bush said.
He added that Congress should work as soon as possible to send him legislation to “keep our economy growing and creating jobs.”
The president and Congress are scrambling to take action as fears mount that a severe housing slump and painful credit crisis could slow consumer spending and hit employment, throwing the world’s biggest economy into its first recession since 2001.
“This growth package must be big enough to make a difference in an economy as large and dynamic as ours, which means it should be about 1 per cent of GDP,” Mr Bush said.
