Posted on 02/21/2003 11:36:37 AM PST by Willie Green
For education and discussion only. Not for commercial use.
PARIS (AP) — Treasury Secretary John Snow says his focus during his first international economic meeting will be on trying to energize a sagging global economy that is feeling the added drag of a possible war with Iraq.
To that end, he said, he will try to get commitments from other industrialized countries to push for greater economic growth. He already has Britain's treasury chief, Gordon Brown, on his side.
``We're very much on the same wave length'' about the need for growth, Snow said Friday.
``He shared my view — we put that subject on the table — we are trying to get a commitment from the G-7 countries that growth is central to the direction of the world economy,'' Snow said, describing his dinner conversation with Brown Thursday night in London.
The task of shoring up that growth is being made more complicated as war worries shake business confidence, he said.
``I think it is having — the whole Iraqi situation — is having a decided negative effect on economic activity,'' Snow told reporters Thursday.
Getting the world economy back to full throttle is one of the biggest challenges facing top finance officials from the seven largest industrialized countries meeting Friday and Saturday in Paris.
Snow said he would be discussing President Bush's proposed tax cuts, telling his colleagues the new plan would not only help boost U.S. economic growth, but also aid other parts of the world.
U.S. officials are concerned that the United States, even with its uneven economic recovery, is still the only engine of global growth because Japan is stuck in a decade-long slump and growth in Europe is faltering.
``The strength of the international economy is tied to the performance of the U.S. economy,'' Snow said. ``If it grows, it helps the rest of the world grow.''
Federal Reserve Chairman Alan Greenspan also was to participate in talks as part of the winter meeting of the G-7 countries — the United States, Japan, Germany, France, Britain, Italy and Canada.
Greenspan dealt Bush's tax cut program a blow last week when he told congressional committees that he was not convinced the U.S. economy needed any further stimulus to guarantee stronger growth this year.
``I'd like to see a broad-based consensus come out of the G-7 on the importance of more vigorous growth on a global basis,'' Snow said. ``Now our growth focus will take the form of the president's tax program. That is the first order of business for us.''
``In some other countries it may require some other set of initiatives to best promote growth,'' he added.
Snow said he believed the war issue would be an important backdrop at the meeting. He would not discuss whether he would be lobbying for financial support for any U.S.-led military effort against Iraq or in rebuilding after a war.
Still, he indicated it would be useful to develop a framework for dealing with those issues.
In terms of how to best get rid of the Iraqi uncertainty, Snow stuck to the Bush administration's stance.
``I think the appropriate response there is the one that the United States is pursuing — to build a coalition that is willing to take the actions that are necessary to end the risks that Saddam Hussein poses for the world, and that by peaceable means, certainly, if possible,'' Snow said.
Snow used a stop in London on Thursday to bolster ties with financial officials in Britain, a close ally in the U.S. campaign to disarm Iraq.
The treasury chief had a full day of private meetings with British business leaders, economists and top finance officials centering on the delicate state of the global economy.
Snow, a former railroad executive with CSX, replaced Treasury Secretary Paul O'Neill, who was ousted by Bush in December in a shake-up of his economic team.
On Friday, Snow was expected to have one-on-one discussions with finance officials from France, Italy, Germany and Russia. A bilateral meeting with Japanese officials was set for Saturday.
US taxpayers get buried alive in debt to prop up the rest of the world.
``I agree with Zell, with this economic theory that when a person has more money in his pocket, they're likely to demand that somebody produce them a good or a service,'' he said.
Bush ignores the economic reality that undermines his economic "stimulus" plan: U.S. trade deficit hit record $435.2 billion in 2002
Any "trickle down effect" normally associated with tax cuts is quickly diverted overseas.
American taxpayers are subsequently mired deeper in debt. Government Hits $6.4 Trillion Debt Limit
Dubya's lack of fiscal responsibility will weaken our nation and lead to his political defeat in 2004.
Like his father, ol' Juanterm is economicly clueless, even when current headlines hit him square in the face.
Any "trickle down effect" normally associated with tax cuts is quickly diverted overseas.
Your Bush quote shows that he is a solid demand-sider, which is the opposite of what is associated with the "trickle down effect."
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