20/09/2010 - Supported by substantial stimulus measures, the US economy has started to grow again after 
one of the most severe economic crises it has faced since the Great Depression, according to the OECD’s 
latest US Economic Survey.

After shrinking through the first half of 2009, US GDP began to increase again and is now projected to be 
2.6% higher in 2010 than the year before. Employment has also started to rise, although the unemployment 
rate is likely to stay above the pre-crisis level for an extended period and long-term unemployment remains 
a concern.

Presenting the Survey in New York City, OECD Secretary-General Angel Gurría said: “It is becoming 
increasingly clear that the economy has entered a soft patch, but this is not inconsistent with previous 
recoveries. We don’t see a risk of a double-dip recession. That said, we don’t see either a recovery that is 
strong enough to put a significant dent in unemployment.”

He stated that support from monetary and fiscal policy is still necessary and welcomed the announcement 
from Federal Reserve Chairman Ben Bernanke to provide additional stimulus if needed. Mr. Gurría also 
welcomed the extension of unemployment benefits, job training and tax credits for hiring workers, and 
the Administration’s target of reducing the deficit to 3% of GDP by 2015.

The establishment of the bipartisan National Commission on Fiscal Responsibility and Reform by 
President Obama with a mandate to propose additional measures to achieve fiscal consolidation also 
goes in the right direction. Mr. Gurría stated that “even if measures are to be implemented only at a later 
stage, spelling them out now is an important signal”.

The Survey argues that the best way to strengthen the public finances would be to make public spending 
more efficient, in particular health-care programs. In this respect, the recent health-care reform, which 
includes measures to reduce the growth in health-care spending, is an important landmark, Mr. Gurría stated.

The Survey also recommends that training and education programs for the unemployed be prolonged to 
help workers adapt to the post-recession economy. Such programs could potentially play an important role 
in facilitating the return to the job market of workers whose skills have been affected by a long spell of 
unemployment.

Moreover, the Survey argues that the United States needs to play a pivotal role in a global agreement to 
reduce greenhouse gas emissions. In that respect, according to the report, government support for 
emission-reducing technologies is important but insufficient without the right incentives in place.

Putting a price on carbon, either through a carbon tax or a cap-and-trade scheme, is the key to providing the 
correct incentives for a greener economy. It would also be less economically costly than purely regulatory 
approaches.


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