Geithner: Economic Challenges Can Only Be Addressed by Government

(AP) Geithner criticizes proposed US GOP budget cuts
By CHRISTOPHER S. RUGABER
AP Economics Writer
WASHINGTON
U.S. Treasury Secretary Timothy Geithner criticized Republicans for focusing too much on cutting spending and taxes and not doing enough to support economic growth.

In a speech in Chicago on Wednesday, Geithner said the challenges facing the U.S. economy can “only be addressed by government action.” Government must invest in education, build roads and infrastructure and help support job growth, he said.

Geithner also disputed GOP criticism that the Obama administration has imposed too much regulation on business.

His remarks were made one day after President Barack Obama ramped up his attacks on GOP budget proposals and Republican presidential front-runner Mitt Romney.

Obama said the proposals are “thinly veiled social Darwinism” and represent a “radical vision.” Rep. Paul Ryan, R-Wisc., spearheaded the proposals, which call for deep cuts to Medicare and other programs, and for tax cuts that favor wealthy Americans.

Many business executives and Republican politicians have argued for months that new rules for the financial sector, health care reform, and environmental regulations have hurt the economy. That has hamstrung businesses and held back hiring, they argue.

Geithner said that business profits are higher than before the 2008 financial crisis and have rebounded more quickly than overall growth and employment. He argued that the U.S. business environment is better than in most US competitors’.