1. News & Issues
Kimberly Amadeo

What is OMB, and How Does It Affect the U.S. Economy?

By January 21, 2007

Follow me on:

The Executive Office of Management and Budget, (OMB) prepares the budget for the President, handles the press and manages the budget throughout the year.

The OMB affects the economy in two ways. First, it stimulates the economy through deficit spending. Government spending creates jobs both directly and through government contracts. Second, it increases the vulnerability of the U.S. economy to foreign countries by increasing our national debt each year.

Comments

August 23, 2009 at 6:14 pm
(1) mary says:

how would recession affect the new zealand economy?

August 24, 2009 at 2:26 pm
(2) Kimberly Amadeo says:

Hi Mary,

According to The Economist, the recession deepened in the first quarter of 2009, when GDP fell 0.7%. On the whole, 2009 GDP will drop 2.1%.

The government is spurring spending to 35% of GDP to make sure banks have enough funds to lend.

Kimberly

Leave a Comment


Line and paragraph breaks are automatic. Some HTML allowed: <a href="" title="">, <b>, <i>, <strike>

©2014 About.com. All rights reserved.