Conservative Economist Zandi "Optimistic" About Financial Future

By Rachel Whitt

Economist Mark Zandi, an adviser for Senator John McCain’s 2008 presidential campaign, announced Thursday that he is “optimistic” about America’s future economic prospects. 

“After three very lean economic years, a year and a half of recession, and a year and a half of weak economic recovery … I think we will experience much stronger growth this year and in 2012.” Zandi, a Chief Economist of Moody’s Analytics, said during a hearing with the Senate Budget Committee

Zandi said he expects the U.S. Gross National Product (GDP) to increase by roughly 4% during 2011. This would be a considerable rise from the minimal 2.6% GDP increase in 2009 and the mediocre 3% increase in 2010. 

Zandi said his optimism comes from seeing strong profit returns in corporations and small businesses. He also commended Congress and the Federal Reserve for their ‘excellent’ policy response to the economic crisis. 

“Without your policy response, the downturn would have been measurably worse and the cost to tax payers measurably greater.” Zandi said. “I think you did the right thing.” 

When Budget Committee Chairman Kent Conrad (D-N.D.) and Ranking Member Jeff Sessions (R-Ala.) expressed their concern over future economic decline, Zandi countered, saying economic obstacles are abating. However, he warned that financial institutions should continue to be questioned in order to provide “vigilant oversight” in the future. 

“I would continue to ask very strong questions of the lending institutions.” Zandi said. “‘Where are we?’ ‘Where were you?’ ‘What are you doing to facilitate [policy]’ just so [the institutions] know we are watching this very carefully.”