US Vice President Joe Biden today defended a massive US spending package as a necessary action to boost sinking US and world economies ahead of a key G20 summit in London next week.
"The major lesson from the Great Depression (after 1929) in our view is that forbearance is not an option," Biden told center-left leaders, including British Prime Minister Gordon Brown, at a conference at a Chilean beach resort.
"We are aggressively protecting our domestic policy agenda but thinking globally as well," Biden said, refering to a massive USD 787 billion economic stimulus plan that US President Barack Obama signed into law earlier this month.
Biden spoke amid reports that several nations like France and Germany were balking at US calls to tackle the crisis with more fiscal stimulus instead of regulation, ahead of a key G20 summit next week in London.
IMF head Dominique Strauss-Kahn said yesterday that more government stimulus plans may be needed in 2010 to boost the world economy.
"I hope this does not come as prescriptive," Biden added. "We do believe that this is what is necessary to get the engine going again in the States."
"The very good news is that we are willing to and want to collaborate. The bad news is that you don't have the last administration to use as an excuse .