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What Is to Be Done About the Economy?

Christina D. Romer answers questions from the Wall Street Journal:

Q&A: Romer Reacts to GDP Data:

Q: What can be done to make things better?

A: Romer: There’s a lot that can be done. We had in our budget $267 billion of temporary recovery measures. So far, by kicking and screaming, we have only gotten a fraction of that. I think the additional state fiscal relief is absolutely essential. The FMAP extension. The $10 billion fund for preventing teacher layoffs. If you look at what’s happening at the state and local level, that’s a clear headwind to the recovery. Anything you can do to help ease that problem would be incredibly beneficial. We are working incredibly hard to get more credit and additional tax cuts for small businesses.