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| Version 6 | Version 7 |
|---|---|
| Bush calls for economy kick-start | Bush calls for economy kick-start |
| (about 1 hour later) | |
| President George W Bush has called for a special package of measures worth billions of dollars to avoid a downturn in the world's biggest economy. | President George W Bush has called for a special package of measures worth billions of dollars to avoid a downturn in the world's biggest economy. |
| He said the growth package would have to be big enough to make a difference to the "large and dynamic" US economy. | He said the growth package would have to be big enough to make a difference to the "large and dynamic" US economy. |
| Mr Bush said it had to include tax incentives for US business and direct tax relief for the American people. | Mr Bush said it had to include tax incentives for US business and direct tax relief for the American people. |
| The package should total at least 1% of gross domestic product, or about $145bn (£74bn), the White House said. | The package should total at least 1% of gross domestic product, or about $145bn (£74bn), the White House said. |
| 'Shot in arm' | 'Shot in arm' |
| President Bush said the package should be "a shot in the arm to keep a fundamentally strong economy healthy". | President Bush said the package should be "a shot in the arm to keep a fundamentally strong economy healthy". |
| "To keep our economy going and creating jobs, Congress and our administration need to work together to enact an economic growth package as soon as possible," he said. | "To keep our economy going and creating jobs, Congress and our administration need to work together to enact an economic growth package as soon as possible," he said. |
| The president said he expected the economy to continue to grow, but at a slower rate than in previous years. | The president said he expected the economy to continue to grow, but at a slower rate than in previous years. |
| While I am confident in the long term, the short-term risks are to the downside Henry Paulson US Treasury Secretary Bush feels political heat class="" href="http://newsforums.bbc.co.uk/nol/thread.jspa?forumID=4114&edition=1">Send us your comments | |
| A US housing market slump and problems in the financial markets have raised fears of a severe economic downturn, with some economists talking about the risk of recession. | A US housing market slump and problems in the financial markets have raised fears of a severe economic downturn, with some economists talking about the risk of recession. |
| The Bush administration has already announced measures to help homeowners struggling to make repayments on their mortgages. | The Bush administration has already announced measures to help homeowners struggling to make repayments on their mortgages. |
| Tax incentives for businesses would help them make new investments and create new jobs, while "letting Americans keep more of their money should increase consumer spending," President Bush said. | Tax incentives for businesses would help them make new investments and create new jobs, while "letting Americans keep more of their money should increase consumer spending," President Bush said. |
| Tax relief | Tax relief |
| Some lawmakers and officials are pressing for a tax rebate of at least $300 per taxpayer, with some lawmakers seeking as much as $800 for per person and $1,600 for families. | Some lawmakers and officials are pressing for a tax rebate of at least $300 per taxpayer, with some lawmakers seeking as much as $800 for per person and $1,600 for families. |
| At first blush it appears the news is a little less dramatic than people were hoping for Peter KennyKnight Equity Markets | At first blush it appears the news is a little less dramatic than people were hoping for Peter KennyKnight Equity Markets |
| Speaking after the president, US Treasury Secretary Henry Paulson said the risks of not taking action to stimulate the economy were too high. | Speaking after the president, US Treasury Secretary Henry Paulson said the risks of not taking action to stimulate the economy were too high. |
| "While I am confident in the long term, the short-term risks are to the downside," he said. | "While I am confident in the long term, the short-term risks are to the downside," he said. |
| Mr Paulson declined to give specific details about the emergency package before talking to Congressional leaders but said a "significant part" would be for ordinary consumers. | Mr Paulson declined to give specific details about the emergency package before talking to Congressional leaders but said a "significant part" would be for ordinary consumers. |
| "We've done a lot of work. There's strong bipartisan support," he said. | "We've done a lot of work. There's strong bipartisan support," he said. |
| Mr Paulson said the stimulus package could create an extra half a million jobs this year. | Mr Paulson said the stimulus package could create an extra half a million jobs this year. |
| Disappointment | Disappointment |
| US shares turned sharply lower following the announcement, with some market participants saying that Mr Bush's plan did not go far enough. | US shares turned sharply lower following the announcement, with some market participants saying that Mr Bush's plan did not go far enough. |
| Economists fear a housing market slump will lead to a recession | Economists fear a housing market slump will lead to a recession |
| Global stock indexes had earlier risen on optimism that the plan would help revive growth in the world's largest economy. | Global stock indexes had earlier risen on optimism that the plan would help revive growth in the world's largest economy. |
| "At first blush it appears the news is a little less dramatic than people were hoping for," said Peter Kenny, managing director at Knight Equity Markets. | "At first blush it appears the news is a little less dramatic than people were hoping for," said Peter Kenny, managing director at Knight Equity Markets. |
| The BBC's Mark Gregory says the impact of the stimulus package would be more political than economic. | The BBC's Mark Gregory says the impact of the stimulus package would be more political than economic. |
| A stimulus package worth perhaps $140bn dollars will have little real impact on a total US economy worth a gargantuan $14,000bn a year, our correspondent says. | A stimulus package worth perhaps $140bn dollars will have little real impact on a total US economy worth a gargantuan $14,000bn a year, our correspondent says. |
| If nothing else it'll make the politicians feel their doing something and cheer up the voters - and who knows it may even do some good, he says. | If nothing else it'll make the politicians feel their doing something and cheer up the voters - and who knows it may even do some good, he says. |