Obama To Take More Government Actions

President Obama is under fire for his policy of throwing dollars away to contain economic turmoil. He has recently announced a new master plan to stimulate hiring by more government action. The plan includes extending tax credits to small businesses, incentives for clean energy initiatives and increased infrastructure spending.

Ken Rogoff, a Harvard Professor, has blasted Obama stating that government interference in the economy should be kept to a minimum.

Rogoff is concerned about the rising debt too. Domestic US debt has increased after the 2008 economic crisis. He further stated that the government needs to be concerned about fiscal deficit too which generally rises during financial crisis.

President Obama, in his Tuesday’s speech, tried to assuage concerns about U.S. deficit. Various treasury bills such as ProShare Trust (NYSE: TBT), iShares Barclays TIPS Bond (NYSE: TIP) showed momentum following this speech. Rogoff has co-authored a book ‘This Time is Different’ with Carmen Reinhart.