August 2nd, 2009
09:49 AM ET
5 years ago

Geithner: Economy turning around, but deficit is a big problem

The Treasury Secretary said Sunday that he expects to see continued improvement in the economy.
The Treasury Secretary said Sunday that he expects to see continued improvement in the economy.

WASHINGTON (CNN) - The U.S. economy is no longer on the edge of collapse, but Americans face "tough choices" in the future on reducing the expanded deficit, Treasury Secretary Timothy Geithner said Sunday.

Appearing on the ABC program "This Week," Geithner said he expected continued economic improvement for the rest of 2009 and a reversal in job losses the following year.

"What you're going to see first is growth turn positive," Geithner said. "Then you're going to see the pace of job losses slow significantly further," with job creation possible next year.

Economic collapse is "not going to happen," Geithner said.

He warned, though, that emergency steps including the bailout plan last year and the economic stimulus bill this year are expanding the federal budget deficit to unsustainable levels.

"We will not get this economy back on track, recovery won't be strong and sustained" if the deficit isn't reduced in the future, Geithner said.

"We can do this - it just requires the will to act," he said, calling an overhaul of the health-care system one important step by reducing costs for both the government and average Americans.

Geithner refused to rule out future tax increases, saying the government would take whatever steps were necessary to reduce the deficit once recovery is established.

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Filed under: Economy • Timothy Geithner
soundoff (49 Responses)
  1. chubby

    MikeH facts speak for themselves if one would only listen or read. Obviously you cannot do either which must mean you are closed minded or just very simple minded. I am open minded and pay alot taxes which I expect you do not.

    August 2, 2009 12:08 pm at 12:08 pm |
  2. chubby

    OBSERVER, judging by your writing and spelling does your mommy know you are on the computer instead of taking you mid day nap.

    August 2, 2009 12:12 pm at 12:12 pm |
  3. Danny, WA

    This guy is a tax-cheater. Once you are a cheater, you are always cheater. He is hiding under Obama's sleeve. Obama himself is a radical cheat.

    August 2, 2009 12:14 pm at 12:14 pm |
  4. Zero.

    "Ìs this Guy sitting on a Toilet?" " He looks a little Flushed"!

    I heard the American-Dollar is going the same route...

    August 2, 2009 12:26 pm at 12:26 pm |
  5. Xuxo Garcia

    ooops! we messed up, can we redo the election?...please please. I trust the ShamWow! guy more than this Geithner fellow...

    August 2, 2009 12:29 pm at 12:29 pm |
  6. Keith in Austin

    Observer: You are the VOICE of the Kool Aid drinking fools believing the hype and rhetoric coming from Obama and the radical left-wing. Will your dismal little live improve with the faint promises that Big Government is going to provide? If You have a JOB, (questionable) YOU will be really whining after you wake up and realize you've been lied to. If your thr loser you appear to be, I guess the working class will have you and others like you, on our backs in higher taxes and other socialistic programs!

    August 2, 2009 12:38 pm at 12:38 pm |
  7. maiga

    good work, boy! stay focused! i know you and president obama will bring the economy back on track.

    August 2, 2009 12:46 pm at 12:46 pm |
  8. mellow

    Very funny coming from a criminal tax cheat...anyways, this is the most ironic thing i have heard during this administrations reign/rule over America. I mean, the potus loves to spend money like nobody before him and then Timmy boy is saying that the defecit is a big problem??? Maybe you two should talk to eachother once in awhile and get your messages together.

    August 2, 2009 12:57 pm at 12:57 pm |
  9. Dennis

    Geitner was part of the problem when Bush was President. Then Obama decided to give him a promotion for his incompetence.

    August 2, 2009 01:04 pm at 1:04 pm |
  10. Rose

    Economy turning around???? Where are the jobs????
    I guess they can't afford to create jobs after all the earmarks in the stimulus program. That was plain and simple shameless. Of course it is the deficit now stupid!!!!! We all know how it grew over the past six months, it is so out of control, watch out taxpayers, we are going to get shafted again.

    August 2, 2009 01:09 pm at 1:09 pm |
  11. J

    Why Republicans Say No to Everything?

    - “NO” to healthcare because they are in bed with big insurance company. These are major campaign contributors
    - “NO” to green energy because they are in bed with a big oils company. These are major campaign contributors
    “NO” to tax cut for higher bracket earning ($250K and up). These are major campaign contributors
    - “NO” to rebuilding America. Because Obama gets all the credit if economy turns around and US is back on the top of the world again
    GOP afraid of losing out there major campaign contributors
    - “Yes” to Wars, the more US is at war, the more GOP make more money form their contributors

    Folks, if you think that the GOP is doing everything for yours benefit, or because they care about you, think again.
    Their political futures and funding are at stakes if they say "Yes" and try to help Americans People or American President to bring this country back on track.

    August 2, 2009 01:09 pm at 1:09 pm |
  12. kishen c.rao

    Giethner, well, it takes some time....you and pres. obama are doing excellent....we are in deep hole by the grace of George Bush...ok...that guy totally messed up this nation than I ever thought of....ok...these GOP guys are so greedy to grab the power...that's all, they are not even talking any kind of sense...be brave...our nation, will never fall apart...financially,...(I have tears in my eyes) we will win this fiscal mess by george bush....i even hate to say that he was our president...just pray for our nation, which i am doing now....GOP want to collapse this economy....you guys are doing fine...clearly representing our GDP....just work on inflation....it is coming back...energy independence is a must...we will revive from this mess...we need to pass health care reform...let dogs bark...we need to fix now....concentrate on health care reform...god bless you and our nation, the USA!!!!Amen...kishen c.rao

    August 2, 2009 01:09 pm at 1:09 pm |
  13. marty

    The will to bring down these deficits-He and the rest of the WH are the ones creating the deficits. Who is going to bring them down!! And where are they going to cut after they make people dependent on government money? No, the answer is to avoid the deficits in the first place-something the WH is unwilling to do. Instead we have talk of another stimulus, expensive health care, and a cap and trade bill that will further deepen the debt and deficit. I don't see any willingness to cut anything yet, just spend more that we don't have. By the time Tim is done spending, we will be so far in debt we won't even be able to pay the interest!

    August 2, 2009 01:12 pm at 1:12 pm |
  14. jeff

    Of course this deficit has nothing to do with your useless stimulus spending. What percent has actually been spent so far? Hardly anything. The real America is pulling through this recession, but it's going to be harmed seriously when the bills come due for all the wasteful "necessary" stimulus spending.

    Three cheers for America. No thanks to useless bureaucrats.

    August 2, 2009 01:38 pm at 1:38 pm |
  15. Geneva Conventions Disregarded

    Federal and State governments actually WANT to keep us in debt. They talk tough talk, and always have, but they continue to put us further and further in debt all the while, and have been doing so for years if not decades. Just look at California, for example, their lawmakers have absolutely no respect for their own citizens.

    August 2, 2009 01:45 pm at 1:45 pm |
  16. awaitingliberalizationbyCNN

    Lying, Lying, non tax paying thug.

    August 2, 2009 01:56 pm at 1:56 pm |
  17. Willy Brown

    Coming froma liar and a democrat.

    August 2, 2009 02:00 pm at 2:00 pm |
  18. BoBo

    Great, the government gets us into this mess and we the taxpayers have to pay more taxes for their mistakes. so much for not taxing people making under $250,000. Another promise broken. Also, we are no where near the bottom of this recession. Just wait until interest rates start rising because of all this stimulus spending. THEN we are in deep doodoo.

    August 2, 2009 02:16 pm at 2:16 pm |
  19. Claudia in Houson

    Obama picked a "smart" team to cleanup this economic disaster that the Bush administration left. And then there are the Republicans who answered with two dummies, McCain and Palin.

    August 2, 2009 02:18 pm at 2:18 pm |
  20. Senior, NC

    Brace yourselves for tax increases. Obama promised less taxes. He even said that seniors would not have to pay taxes if he were elected. Has anyone heard a word about that since he was elected? Seniors, let's remember that in 2012.

    August 2, 2009 02:22 pm at 2:22 pm |
  21. Mike, Syracuse, NY

    Just wait for the Dems to gut our national defense to pay for social welfare programs. It happened under Clinton and Carter, neither of whom were as liberal as Obama.

    August 2, 2009 02:36 pm at 2:36 pm |
  22. Dave in Illinois

    I don't see it reported here that he mentioned the value added tax as a way to reduce the deficit once the economy has recovered. This would raises the price of every good and service we buy and is effectively one of the most regressive taxes possible. It would take the biggest bite from the lowest wage earners income; all the families that Obama promised would get tax relief.

    August 2, 2009 02:40 pm at 2:40 pm |
  23. Matt

    Translation: The economy was fixing itself but all our needless spending on NOTHING is now the real problem and this massive debt will stagnate America for the next 4 years. Thanks Obama.

    August 2, 2009 02:49 pm at 2:49 pm |
  24. 60's survivor

    look beyond the front of your nose. this administration is looking to the future and the bigger picture. those detractors who's party is out say "look the sky is falling". and all it is is debri from their own failed rhetoric! no answers. just a lot of irritating irrational noise !

    August 2, 2009 03:22 pm at 3:22 pm |
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