December 29, 2008	Monday	Zilhaj 30, 1429

WASHINGTON: Spending government money solely to stimulate consumer spending would be a short-sighted mistake, one of US President-elect Barack Obama’s top economic advisers said on Sunday.

Lawrence Summers, a former treasury secretary and Obama’s pick to head the White House National Economic Council, said policy needed to address both immediate job creation and longer-term investment needs.

“In this crisis, doing too little poses a greater threat than doing too much,” Summers wrote in the Washington Post.

“Some argue that instead of attempting to both create jobs and invest in our long-run growth, we should focus exclusively on short-term policies that generate consumer spending,” Summers said.

“But that approach led to some of the challenges we face today and it is that approach that we must reject if we are going to strengthen our middle class and our economy over the long run.”

Obama has said that signing a major economic stimulus package will be his first priority when he takes office on Jan 20. His advisers have been working with Congress to try to get a package ready for his approval right away.

Vice President-elect Joe Biden said on Tuesday the incoming administration was “getting awful close” to reaching agreement with Congress. Government sources have talked about moving a stimulus bill with a price tag in the range of $675 billion to $775 billion over two years.

The US economy has been in a recession for a year and many economists expect growth to contract through the first half of 2009. That would make this the longest recession since World War Two.

“I don’t think Americans can wait,” Obama adviser David Axelrod said on the CBS programme “Face the Nation” on Sunday.

“People are suffering, our economy is sliding and we need to act. And so our message to Congress is to work on it with all deliberate speed.” Some in Congress have expressed concern about the huge amounts of money that have already been spent under the Bush administration in an effort to quell the financial crisis.—Reuters