Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Key to Job Growth Is Less Spending, Malpass Says: Tom Keene

Don't Miss Out —
Follow us on:

March 2 (Bloomberg) -- The U.S. government should cut its spending and shrink its budget deficit to boost job growth and investment, according to David Malpass, founder and president of the research firm Encima Global.

“To get jobs going in the U.S., you’ve got to bring money back to the U.S., and right now capital is going to Asia,” New York-based Malpass said in a Bloomberg Television interview on “Surveillance Midday” with Tom Keene. “If the federal government reduced spending, we would get more jobs.”

The U.S. budget deficit reached a record $1.3 trillion in 2010 and has swelled to 8.8 percent of the economy from 1 percent in 2007. The unemployment rate has remained at or above 9 percent since May 2009.

Structural reforms are important to contain the shortfall, as investors are worried about whether the deficit will remain this high in five years, Malpass said.

“If Congress would simply pass a law and the president sign it, that would limit the debt-to-GDP ratio and investors around the globe would flock to the U.S.,” Malpass said.

The Federal Reserve, which in November started a $600 billion program to buy U.S. debt in an effort to spur growth, is “overreaching on its role,” he said.

To contact the reporters on this story: Catarina Saraiva in New York at asaraiva5@bloomberg.net; Tom Keene in New York at tkeene@bloomberg.net

To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.