JULY 1, 2011, 6:02 P.M. ET.
Barton Biggs: U.S. Needs a Massive Public Works Program .
By SIMON CONSTABLE
Don’t expect the economy to perk up any time soon.
The U.S. and Europe are set to grow at an anemic pace for the foreseeable future unless the government can step in with an enormous fiscal stimulus, according to a veteran investor.
Speaking exclusively with The Wall Street Journal, Barton Biggs, managing partner at multibillion dollar hedge fund Traxis Partners, painted a bleak outlook for the developed world with only huge government intervention likely to improve things.
The U.S. needs to invest in a massive public works program, and rich people and corp’s should pay more taxes. In the Big Interview, Barton Biggs, of Traxis Partners, shares his views with the WSJ’s Simon Constable.
Specifically, he points to European “real” economic growth stuck in a range of 0.5%-1% a year and the U.S. not much better at 1.5% to 2% a year. Real growth takes into account the effect of price inflation on measurements of economic activity.
The American economy won’t return to the old days at 3.5% or 4% annual growth, he says