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. 60's survivor

    not trying to gloss over the facts. truth is the best weapon against fear. know what we must deal with. and then deal with it!! fix what we can. maintain a healthy and educated population and improve our quality of life if not the quantity. we can have a good life. but we must get rid of the robber barons. we must eliminate high interest and health care costs. the money we save on those two evils can go back into the economy and help sustain real jobs. that my friends is key to the problem. sorry. we just don't need to support the over compensated CEO's any longer. GOP has dinosaur mentality.

    August 2, 2009 10:07 am at 10:07 am |
  2. The Unshrub

    Obama and team are doing this the right way. First they fix the recession, and then they worry about fixing the deficit. The republicans didn't worry about either when they were in power.

    August 2, 2009 10:10 am at 10:10 am |
  3. rrconserv

    let me get this straight – Giethner says "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" – but everything this president has done has increased the deficit. Hmmmmm.....

    August 2, 2009 10:23 am at 10:23 am |
  4. tpbco

    Perhaps if timmy and associates actually tried paying THEIR taxes, they might have some credibility.

    Typical liberal elitists...do as I say, NOT as I do.

    August 2, 2009 10:27 am at 10:27 am |
  5. Angie in Pa

    Well Bush and Republicans did get us in a mighty big Debt they nearly Bankrupt us its going to take a long time to recover!

    August 2, 2009 10:40 am at 10:40 am |
  6. Scott L

    Gee, ya think? And the liberals want to add Trillions more in public health care.

    ENOUGH SPENDING!!!!!

    August 2, 2009 10:42 am at 10:42 am |
  7. Scott L

    @Angie in PA are you kidding me?

    Obama has spent more money in 6 months than Bush's entire presidency!!!!!!

    August 2, 2009 10:42 am at 10:42 am |
  8. tk

    If we could get rid of all the corruption in this Government, we would have enough to pay off the nat'l debt. This includes audits on all congressmen, so they are forced to pay their taxes! Taxpayers are not aware of the special laws that are passed to help the lobbiest!

    We the people, do not have any say anymore.

    August 2, 2009 10:43 am at 10:43 am |
  9. Scott L

    @60's survivor-

    Say goodbye to the miracles of modern science. Got cancer? Here is a free band-aid now go away.

    Welcome to your new Obama Pelosi health care cluster!

    August 2, 2009 10:44 am at 10:44 am |
  10. S. in Florida

    The Unshrub August 2nd, 2009 10:10 am ET

    Obama and team are doing this the right way. First they fix the recession, and then they worry about fixing the deficit. The republicans didn't worry about either when they were in power.
    ------------------
    No, the Republican's only worry was that their already wealthy CEO buddies continue to get their bonuses, even while driving the corporation into the ground and committing illegal and unethical practices.

    August 2, 2009 10:44 am at 10:44 am |
  11. ib

    This bunch of spending left wingers wouldn't know a turn around if they saw it. All they think is about is more spending and more gov. controll of people's lives. Disgusting!!!!

    August 2, 2009 10:54 am at 10:54 am |
  12. democrat no mas

    I've said it all along. Obama's cure will be far worse than Bush's disease. Slow down on the spending. It's the one thing you can do something about.

    August 2, 2009 10:55 am at 10:55 am |
  13. carolflowery

    Liar

    August 2, 2009 10:56 am at 10:56 am |
  14. Keith in Austin

    Angie in PA:

    Most Americans with half a brain, are sick and tired of Liberal fools like you blaming Bush for everything! Wake up silly! You're Annointed One has already spent 3-times more than the prior adm.

    Let's assume some responsibility for a change OK! People like YOU that aimlessly support the Left-wing Liberal agenda are blindly allowing them to ruin this Country.

    August 2, 2009 10:57 am at 10:57 am |
  15. Jero

    Good then finally we can stop whining about tax cuts, and waving teabags, in bring this country back to the people. If we sell every building and sell every inch of soil we live on. We need to sell it 5 times instead of once! Thats how much we own this country, not one inch of soil!
    2 options: 1: cut spending; 2: increase government income and therefore taxes.
    Option 1 is never going to happen, neither under democratic or republican administrations, they've proven that... so option 2 remaines.
    Debt and therefore greed, will be our downfall, if nothing is done NOW!

    August 2, 2009 11:15 am at 11:15 am |
  16. chubby

    The economy is screwed up by geithner and the other tax cheats appointed by obummer. If President Bush had appointed any tax cheats to government positions the liberal lame brained news would have had it on the front page from the beginning to the end of his presidency. But no, the lame brained media do not report the screw ups of obummer like they do the republicans. I wonder if obummer has visited that 58th state yet, maybe he thought it was France. How is the change working out for you so far.

    August 2, 2009 11:38 am at 11:38 am |
  17. OBSERVER

    To all those thaqt are SICK and TIRED of hearing about how it was all BUSH's FAULT accept it Obama would not have to do all this spending if BUSH hand not driven the country off the clift.

    The faqct that Obama acted boldly and timely shows he reallyu does care about the USA nad ALL the people in it, not jsut the RICH people. That is why everyone earning less than $250,000.00 a year has already recieved a TAX CUT. Sure it may not be a BIG cut but better than none at all.

    The more Obama does the more afraid the GOP becomes and the bigger the LIES they come up with. Troubl is the MEDA does not challenge the LIES rather they attempt to make big stories out of them. LIES must be called lies and delat with BIRTHERS need to understand that Obama is an US Citisen by birth. His mother was a US Citisen and there for even if he had been born on the dark side of the MOON he would be a US Citisen.

    August 2, 2009 11:43 am at 11:43 am |
  18. OBSERVER

    Let usw see how many REPUBLICANS vote to limit CEO bones'.

    The REPUBLICANS talk big trash on TV but then go kiss CEO butts.

    August 2, 2009 11:46 am at 11:46 am |
  19. Hayden

    Bush certainly didn't help the debt but in less than six months Obama and company has pushed the deficit to "unsustainable levels." Wouldn't that be something you consider before ramming through a trillion dollars in giveaways aka stimulus? No one is being asked to sacrifice and Obama tells people that "Only the government can." Only the government can get us into a mess like this and only the People will be able to get us out.

    For those that say that Obama has done this the right way by fixing the recession... tell me, and the 10% of American's nationwide without a job, how exactly has he fixed anything?

    August 2, 2009 11:50 am at 11:50 am |
  20. byron

    No duh!!! They should've thought about that before they wanted to put everything under government control and SPEND SPEND SPEND!!! I tell you, these are some very stupid people. How long until 2012??

    August 2, 2009 11:51 am at 11:51 am |
  21. Theresa

    Federal Reserve put trillions on our credit card and they WILL TAX us in every which way, including through Cap and Trade if we don't stop it in the Senate.
    Obama supports this because he believes in the upper small elite class ruling the poor masses, who have to share their crumbs between them while the elites eat, drink, travel and live in the finest estates.

    Don't be fools, email/call senetors and congress to Support Ron Paul's Audit the Federal Reserve HR 1207

    August 2, 2009 11:54 am at 11:54 am |
  22. MikeH

    Chubby, you are a paid Republican Liar.

    August 2, 2009 11:55 am at 11:55 am |
  23. Keith in Austin

    Geitner also went on to say that he has some swampland in Florida that he'd like to sell us! This guy is a Whitehouse Puppet that did'nt pay income taxes! Watch the unemployment rates! 9.5 percent and going UP! That's the real litmus test! Tax Cheat Timmy is a typical Obama beaurocrat and not to be trusted Folks!

    August 2, 2009 11:57 am at 11:57 am |
  24. Asian4Hillary

    The Economy is NOT turning around geez! If what he's saying is true, why is it he went to China with Hillary on their knees begging China to lend USA more money? If he meant "the economy is turning around thanks to new loan from China" then he is right. Did Tim pay attention to the US dollar? It is losing its value, hyper-inflation will soon hit every household in America. No one in their right mind would believe the economy is turning around when the Federal Government issued new treasury bonds and put in auction, it means it is NOT turning around, the government has to borrow more money which increases the new deficit of $2 trillion Obama has created less than 120 days in office.

    August 2, 2009 12:02 pm at 12:02 pm |
  25. Bedtime for Obonzo

    "Unsustainable deficits"? And where were Mr. Geithner's comments four months ago, when the drunken sailors went on this binge? He knew what would happen. Weasel.

    August 2, 2009 12:03 pm at 12:03 pm |
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