14 September 2011 21:35 [Source: ICIS news]
HOUSTON (ICIS)--Unless the US government enacts sweeping policy reforms, the growth of the country’s economy will continue to be sluggish, an economist said on Wednesday.
The US economy is about where it was in the mid-1980s, when banks were going bankrupt, housing was moribund and credit was tight, said Steven Craig, a professor of economics at the University of Houston.
Craig was a speaker at the 9th annual Methanol Forum in Houston, which was sponsored by US consultancy Jim Jordan & Associates.
Craig said the country did not recover from the downturn of the 1980s until the mid-1990s, but the catalyst for that recovery was not the federal government.
“Even then the recovery was probably accelerated because of the technical change from the information revolution,” he said.
“The US is about in 1986 right now. We have a long way to go, unless we get real policy reform that addresses fundamental problems,” he added.
Craig said there needs to be true change in the country’s health-care system and tax structure before a true recovery takes place.
“I think the feds aren’t going to help us anytime soon,” he said. “So run your business well.”
Paul Hodges studies key influencers shaping the chemical industry in Chemicals and the Economy
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