The recent deceleration in U.S. health-care costs appears to be at least partially structural, and not entirely due to a still-lackluster economy. That offers some hope that the slowdown will continue. Still, more needs to be done to encourage the trend.
For a country that prides itself on a robust private sector, the U.S. lags behind many other nations in using the private sector to finance, build and operate infrastructure. From 1990 to 2006, for example, public-private partnerships financed five times as much transportation infrastructure in the U.K. as in the U.S. -- even though the U.S. economy is more than six times larger than that of the U.K.
White House Budget Director Peter Orszag was poised to become the first member of Barack Obama’s Cabinet to leave, as early as this summer. Then came an appeal from the president insisting that he reconsider.
Losing momentum in the economic recovery, not rising inflation, is the biggest threat as the U.S. seeks to rebound from the worst financial crisis since the Great Depression, according to Citigroup Inc.’s Peter Orszag.
With economic growth still sluggish, efforts to rein in federal deficit spending should be delayed until the U.S. is better positioned to handle a contraction in government spending, according to Citigroup Inc.’s Peter Orszag.