President George W. Bush said on Monday the U.S. economy was currently facing heightened risks, but its foundation was solid and its long-term outlook was strong.
"This report indicates that our economy is structurally sound for the long-term and that we're dealing with uncertainties in the short-term," Bush told reporters after signing his annual economic report to Congress.
The report did not alter the White House forecast that the U.S. economy would grow 2.7 percent in 2008, a far rosier picture than private-sector economists who have predicted growth of just 1.6 percent this year.
According to this article, President Bush believes that the United States's economy is stable for the long run, but does face some risks for the short run. The government has created a stimulus package amounting to $152 billion that supplies tax rebates and business incentives in order to lower the risk of a recession. Bush plans to sign the stimulus package on Wednesday, February 13, and rebates should begin going out in May. This article also focuses on external relations with other nations that can boost our economy, such as free trade agreements with Colombia, Panama, and South Korea. This article concludes with the assertion that we must just allow the economy to adjust and that there is no need to panic. This shows that the United States has learned from the past, as in the Panic of 1907 and the Great Depression. It is best to allow the economy to adjust and level out itself, rather than panicking and taking such drastic measures as withdrawing all of your money from an account. If we all panicked, there would be the possibility of a similar occurrence as the Great Depression.
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