Ann Owen, associate professor of economics and former economist for the Federal Reserve Board of Governors, was interviewed for United Press International article "Analysis: Kerry and the U.S. economy." Owen said the most significant part of John Kerry's economic proposals is his plan to reduce the deficit.
"Unfortunately for Kerry, however, deficit reduction is a difficult issue on which to win an election. Many people don't entirely understand what the deficit is or how its reduction will affect them personally, even though in the long-run the effects could be very significant," Owen noted.
"A large government deficit will increase interest rates and make it harder for people to buy homes and for businesses to invest in new opportunities that create jobs," she said. "A debt-laden economy will also be in poor fiscal shape to deal with the challenges ahead -- rising health care costs, an insolvent Social Security and Medicare system, and the challenges of increased global competition."
