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Davos panel backs US growth policies

Associated Press Modified: January 29, 2011 at 12:34 pm •  Published: January 29, 2011
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DAVOS, Switzerland (AP) — A day after Britain's Prime Minister David Cameron defended his tough austerity measures at home, a Davos economic panel says the United States is right to take the opposite approach, spending money to stimulate jobs and growth.

Former U.S. Treasury Secretary Larry Summers — who headlined the panel — says "the highest priority has to attach to establishing strong and significant growth."

But the diverse group also warns that the U.S. may soon need to signal a willingness to take the tough and politically costly decisions needed to eventually put its fiscal house in order, such as raising taxes or lowering spending.

Until recently, Summers headed the White House National Economic Council and is considered an architect of President Barack Obama's economic policy.