Economists Say Steep Challenges Await Next Administration

March 23, 2012

A panel of leading economists at the Carnegie Endowment for International Peace says whoever wins the 2012 election has his work cut out. Whether President Barack Obama wins a second term or Americans decide change is necessary, the economists say the next administration faces an uphill challenge. Among them are persistently high unemployment, a surging national debt and the inability of political leaders to agree on very much.

"Under my administration, America is producing more oil today than at any time in the last eight years," said Obama.

"Since the president [Obama] has been president, the cost of gasoline has doubled," said former Massachusetts governor and Republican presidential candidate Mitt Romney.

Soaring gasoline prices

Even as America's political leaders argue over who has the better energy policy, most economists say there's little anyone can do in the short term to lower gasoline prices.

The same goes for fixing Europe's debt crisis - or the slowdown in Chinese manufacturing.

But a panel of economic experts says there's no shortage of domestic problems that require immediate attention. The housing market remains weak. Income inequality in the U.S. is now among the highest in the world. And despite a slowly improving job picture, labor economist Ron Blackwell said nearly one in five Americans is either unemployed or underemployed