As long as we find that the energy impact is only temporary ... my guess is that the effects on the overall economy will be fairly modest.
impact on consumer spending and production broadly will be modest.
The impact on the broader economy and financial markets of the problems in the subprime markets seems likely to be contained.
But again, I remain optimistic that the impact on energy from these two events will be limited.
There's going to be a big impact there for a number of weeks. It's big enough to show up in the national statistics.
There is of course the direct impact of the shutting down of the U.S. economy, the loss of several hundred thousand jobs at least, and reduced output production in the Gulf,
Low marginal tax rates are supportive of economic growth. I would submit that we would want to look very hard at government spending - make sure it's controlled - before we raise taxes, which, in turn, would have negative impacts on the economy.