OECD Sees Threats To U.S. Economic Recovery

The Organization for Economic Cooperation & Development reports that the U.S. economy is slowly recovering from its severe recession but that the pace of economic growth is expected to remain slow for some time. The report states that a primary threat to U.S. recovery is the long-term growth in health care spending, and it warns that Congress should not try to override provisions in the health care reform legislation that seek to restrain these costs. OECD emphasizes that the U.S. needs to take action to reduce the risks from climate change. “Global warming is a global problem that requires a global solution, and U.S. leadership is vital in this regard,” Angel Gurría, OECD secretary-general, said at a speech in New York City on the release of the survey. He said the best incentive for developing new technologies that cut greenhouse gases is to tax carbon emissions or impose a cap-and-trade system for reducing CO₂ releases. “We strongly call on the U.S. Congress to pass climate-change legislation,” Gurría said. OECD is composed of 33 nations and is dedicated to improving world market economies.