Text knode: Project Syndicate

Fact No	Subject	Verb	Object	Weight
1	world economy	teetered	on the edge of calamity	1
2	It	is	now almost a year since the world economy	1
3	Lehman Brothers	filed	for bankruptcy	1
4	deal	brokered	financed by the US government	3
5	failing Wall Street icon Merrill Lynch	was absorbed	by Bank of America in a deal	1
6	mega-insurance company AIG	was taken over	by the United States government	3
7	Non-financial companies	could not get	working capital, much less funding for long-term investments	1
8	Months of emergency action by the world's leading central banks	prevented	financial markets from crashing	2
9	banks	stopped	providing short-term liquidity to other banks and industrial companies	3
10	central banks	filled	gap	1
11	major economies	avoided	collapse of credit and production	1
12	Banks	lending	to each other	1
13	crisis	culminated	in a collapse of asset prices at the end of 2008	1
14	Middle-class and wealthy households around the world	cut	spending sharply	6
15	Middle-class and wealthy households around the world	felt	poorer and therefore	1
16	Sky-high oil and food prices	added	to the pain, and thus to the downturn	1
17	Enterprises	could not sell	leading to production cuts and layoffs	2
18	Enterprises	could not sell	output	1
19	Rising unemployment	compounded	loss of household wealth, throwing families into deep economic peril and leading to further cutbacks in consumer spending	7
20	unemployment	continues	to rise in the US and Europe	1
21	growth	create	enough new jobs	1
22	Dislocations	being felt	around the world	1
23	huge debate	has ensued	around the so-called "stimulus spending" in the US, Europe, and China	7
24	higher government outlays or tax incentives	offset	decline in household consumption and business investment	5
25	Stimulus spending	aims	to use	5
26	one-third	is	public outlays on roads, schools, power, and other infrastructure	2
27	one-third	takes	forms of federal transfers to state and local governments for health care, unemployment insurance, school salaries, and the like	1
28	roughly one-third of the $800-billion two-year stimulus package	comprises	tax cuts	5
29	roughly one-third of the $800-billion two-year stimulus package	comprises	to stimulate consumer spending	8
30	they	imply	need to cut spending	5
31	they	increase	budget deficits, and thus	2
32	they	increase	raise taxes sometime in the near future	1
33	Stimulus packages	are	controversial	1
34	they	boost	output and jobs in the short term, and, if so, whether they do enough to compensate for the inevitable budget problems down the road	2
35	government	gives	to increase consumers' take-home pay	2
36	consumers	expect	that their taxes will rise in the future	1
37	they	may decide	to save the tax cut rather than boost consumption	1
38	stimulus	will worsen	budget deficit	5
39	stimulus	will have	little positive effect on household spending	9
40	early assessment of the stimulus packages	suggests	that China's program has worked well	3
41	sharp fall in China's exports to the US	has been compensated	by a sharp rise in the Chinese government's spending on infrastructure - say, on subway construction in China's biggest cities	10
42	tax cut	been saved	spent	1
43	infrastructure component	been spent	long lags in turning the US stimulus package into real construction projects	5
44	third part - the transfer to state and local governments	has been	successful in maintaining spending on schools, health, and the unemployed	6
45	US stimulus effects on spending	have	probably been positive but small, and without a decisive effect on the economy	8
46	concerns about the enormous US budget deficit	running	at $1.8 trillion	3
47	households	focus	attention on potential future budget cuts and tax increases	3
48	concerns about the enormous US budget deficit	are bound	to increase, not only creating enormous uncertainties in politics and financial markets, but also dimming consumer confidence	4
49	US	fostering	alternative pathways to growth	1
50	US	cutting	budget deficit	3
51	US	will need	to start	1
52	US	has reached	practical limits of reliance on short-term stimulus spending	7
53	green recovery	based	on a surge of investment in renewable energies, new electric vehicles	2
54	Barack Obama	introduced	into the presidential campaign the theme of a "green recovery," based on a surge of investment in renewable energies, new electric vehicles, environmentally efficient "green" buildings, and ecologically sound agriculture	1
55	policy attention	turned away	from that green recovery	1
56	US	needs	to return to this important idea	1
57	they	rebuild	wealth and pension assets	1
58	Debt-burdened consumers in the US and Europe	will limit	to come	1
59	Debt-burdened consumers in the US and Europe	will limit	spending for years	6
60	resulting economic slack	gives	to compensate for low consumer spending with increased investment spending on sustainable technologies	7
61	resulting economic slack	gives	us the historic opportunity	1
62	Government policies in the US and other rich countries	should stimulate	investments through special incentives	3
63	rich world	provide	to buy sustainable energy technologies, such as solar and geothermal power	2
64	rich world	provide	poorest countries with grants and low-interest loans	1
65	Doing so	improve	long-term environmental sustainability	1
66	Doing so	accelerate	economic development	1
67	Doing so	would add	to the global recovery	1
68	crisis	be	opportunity to turn from a path of financial bubbles and excessive consumption to a path of sustainable development	1
69	seizing this opportunity	is	only recipe for genuine growth that we have left	1
70	Reprinting material from this website without written consent from Project Syndicate	is	violation of international copyright law	1

1

world economy

teetered

on the edge of calamity

1

2

It

is

now almost a year since the world economy

1

3

Lehman Brothers

filed

for bankruptcy

1

4

deal

brokered

financed by the US government

3

5

failing Wall Street icon Merrill Lynch

was absorbed

by Bank of America in a deal

1

6

mega-insurance company AIG

was taken over

by the United States government

3

7

Non-financial companies

could not get

working capital, much less funding for long-term investments

1

8

Months of emergency action by the world's leading central banks

prevented

financial markets from crashing

2

9

banks

stopped

providing short-term liquidity to other banks and industrial companies

3

10

central banks

filled

gap

1

11

major economies

avoided

collapse of credit and production

1

12

Banks

lending

to each other

1

13

crisis

culminated

in a collapse of asset prices at the end of 2008

1

14

Middle-class and wealthy households around the world

cut

spending sharply

6

15

Middle-class and wealthy households around the world

felt

poorer and therefore

1

16

Sky-high oil and food prices

added

to the pain, and thus to the downturn

1

17

Enterprises

could not sell

leading to production cuts and layoffs

2

18

Enterprises

could not sell

output

1

19

Rising unemployment

compounded

loss of household wealth, throwing families into deep economic peril and leading to further cutbacks in consumer spending

7

20

unemployment

continues

to rise in the US and Europe

1

21

growth

create

enough new jobs

1

22

Dislocations

being felt

around the world

1

23

huge debate

has ensued

around the so-called "stimulus spending" in the US, Europe, and China

7

24

higher government outlays or tax incentives

offset

decline in household consumption and business investment

5

25

Stimulus spending

aims

to use

5

26

one-third

is

public outlays on roads, schools, power, and other infrastructure

2

27

one-third

takes

forms of federal transfers to state and local governments for health care, unemployment insurance, school salaries, and the like

1

28

roughly one-third of the $800-billion two-year stimulus package

comprises

tax cuts

5

29

roughly one-third of the $800-billion two-year stimulus package

comprises

to stimulate consumer spending

8

30

they

imply

need to cut spending

5

31

they

increase

budget deficits, and thus

2

32

they

increase

raise taxes sometime in the near future

1

33

Stimulus packages

are

controversial

1

34

they

boost

output and jobs in the short term, and, if so, whether they do enough to compensate for the inevitable budget problems down the road

2

35

government

gives

to increase consumers' take-home pay

2

36

consumers

expect

that their taxes will rise in the future

1

37

they

may decide

to save the tax cut rather than boost consumption

1

38

stimulus

will worsen

budget deficit

5

39

stimulus

will have

little positive effect on household spending

9

40

early assessment of the stimulus packages

suggests

that China's program has worked well

3

41

sharp fall in China's exports to the US

has been compensated

by a sharp rise in the Chinese government's spending on infrastructure - say, on subway construction in China's biggest cities

10

42

tax cut

been saved

spent

1

43

infrastructure component

been spent

long lags in turning the US stimulus package into real construction projects

5

44

third part - the transfer to state and local governments

has been

successful in maintaining spending on schools, health, and the unemployed

6

45

US stimulus effects on spending

have

probably been positive but small, and without a decisive effect on the economy

8

46

concerns about the enormous US budget deficit

running

at $1.8 trillion

3

47

households

focus

attention on potential future budget cuts and tax increases

3

48

concerns about the enormous US budget deficit

are bound

to increase, not only creating enormous uncertainties in politics and financial markets, but also dimming consumer confidence

4

49

US

fostering

alternative pathways to growth

1

50

US

cutting

budget deficit

3

51

US

will need

to start

1

52

US

has reached

practical limits of reliance on short-term stimulus spending

7

53

green recovery

based

on a surge of investment in renewable energies, new electric vehicles

2

54

Barack Obama

introduced

into the presidential campaign the theme of a "green recovery," based on a surge of investment in renewable energies, new electric vehicles, environmentally efficient "green" buildings, and ecologically sound agriculture

1

55

policy attention

turned away

from that green recovery

1

56

US

needs

to return to this important idea

1

57

they

rebuild

wealth and pension assets

1

58

Debt-burdened consumers in the US and Europe

will limit

to come

1

59

Debt-burdened consumers in the US and Europe

will limit

spending for years

6

60

resulting economic slack

gives

to compensate for low consumer spending with increased investment spending on sustainable technologies

7

61

resulting economic slack

gives

us the historic opportunity

1

62

Government policies in the US and other rich countries

should stimulate

investments through special incentives

3

63

rich world

provide

to buy sustainable energy technologies, such as solar and geothermal power

2

64

rich world

provide

poorest countries with grants and low-interest loans

1

65

Doing so

improve

long-term environmental sustainability

1

66

Doing so

accelerate

economic development

1

67

Doing so

would add

to the global recovery

1

68

crisis

be

opportunity to turn from a path of financial bubbles and excessive consumption to a path of sustainable development

1

69

seizing this opportunity

is

only recipe for genuine growth that we have left

1

70

Reprinting material from this website without written consent from Project Syndicate

is

violation of international copyright law

1


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