Obama's Newest Economic Ideas Won't Fix Job Market Right Away, Gault Says

The Obama administration’s latest economic proposals of infrastructure spending and tax relief for businesses will take time to bring down the unemployment rate, said Nigel Gault, chief economist at IHS Global Insight in Lexington, Massachusetts.

“I don’t think it’s going to kick start the economy,” Gault said today in an interview on Bloomberg Television. Infrastructure spending will help the unemployed construction worker in coming years, he said. “Will it create jobs quickly? No it won’t.”

President Barack Obama is proposing to expand tax relief for businesses and boost federal spending on transportation to help bolster the economy. In Milwaukee yesterday, Obama called for $50 billion in the first of a six-year program to fix roads, railways and modernize the air-traffic control system.

“There’s not much we can do very quickly to make a big difference,” Gault said. “We have to recognize unemployment is going to be high for a long while.”

To contact the reporters on this story: Vincent Del Giudice in Washington vdelgiudice@bloomberg.net; Carol Massar in New York cmassar@bloomberg.net.

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