NEW YORK (CNNMoney) - President Obama answered questions about the still-sluggish job market and broader economy in his first-ever Twitter town hall Wednesday.
Sitting at the White House with Twitter Co-founder Jack Dorsey, Obama took questions from Twitter users, or so-called tweeps, and responded via a live webcast online.
As a Chief Executive that has taken an oath to uphold, protect & defend the Constitution, the President has significant steps he can take to pressure the GOP to raise the Debt Limit on HIS TERMS.
The 14th Ammendment states that the US debt can not become invalid. If Congress won't act then the President is empowered to act UNILATERALLY.
The United States borrows 32% of every dollar it spends. To balance the national cashflow, President Obama is congressionally authorized to CUT/ HOLD BACK / DELAY whatever spending he wants to keep us from spending more than the 68% of Congressionally approved spending that we can fund through government revenues. He can do this by way of Executive Order(s) to the Secretary of the Treasury. That's how he keeps our debt "valid".
In announcing this unprecidented step, he should go on TV and vow to protect the pay of "Senior & Soldiers" (paying 100% of those). He should then cut DOD expenditures for programs that the Simpson-Bowles deficit reduction panel identified. He should eliminate industry subsidies [including oil & gas to Mobil, Exxon, BP] as he sees fit. He should suspend Congressional & Presidential pay until such time as the GOP backed house sends him a bill that raises the debt limit to the level he wants. Instead of a 3:1 ratio of "reduced spending" to "increased revenues" as the GOP is demanding, he should insist on a 50-50 split.
The Constitution has set up a situation where the President can not be deemed wrong if he follows this approach. Republicans can't win in the Supreme Court. As a practical matter, the GOP's corporate constiuents would be screaming bloody murder long before this case could make it to the court and they Republicans would cave.
If the President does this, independent voters will rally behind him. The Democratic base will be estactic as he stands up againt Congressmen playing Russian roulette with the nation's credit rating. Seniors will praise Obama for saving Grandma's social security. Capital markets will be calmed because the risk of a US default will have been removed. Stock markets will soar – interest rates will hold steady. The deficit will be driven lower.
Can you say Obama re-elected?
Very little downside risk on this one sir.
Mr. President you don't create jobs by raising taxes you may increase revenue short term but A) you don't create jobs with that and B) long term you kill jobs.
Get your facts straight Mr. President.
Stop playing the class warfare for short term gain, the damage to the country could be great and long lasting. Shame on you.
WOW, Gregory Newbold! That's very interesting and sounds good to me. You should post this every time you get a
chance. Shout it from the roof tops, whatever it takes. I would be dancing in the streets. Hope someone is
listening. PS: Are you sure about this???
@Nini...Class warfare being played by this president? Are you serious about this? Wow. and what the GOP is doing at the state level is great for society?
Thanks gregory Newbold. Awesome.
The GOPs are fools not to stay at the negotiating table & get some of what they want. I agree Obama would *have* to raise the debt ceiling unilaterally to preserve the full faith & credit of the U.S. if they keep jerking him around like they've been doing. I wished Obama would get on tv and *demonstrate* with graphics why Bolles/Simpson are right & both budget cuts & tax hikes are needed to balance the budget & avoid a debacle a la Greece.
@ Gregory Newbold is spot on. By not sending the President a bill to raise the debt limit, the Republican House of Representatives has abdicated its responsibility and the President will have to step in.
Mr. Obama just needs to do so in a way that meets the economics AND the politics of the situation.
The politics are to favor citizens like "seniors & soildiers" and to show ZERO favor to partisan, obstructionist politicians.
This clown doesn't have a clue how to create jobs, he's never really had one. Way over his head. Anybody but obama 2012
It's called ECON 101.
During a recession [and sub-sequential sluggish recovery], you reduce taxes and increase gov't stimulus spending. Both these actions increase demand in economy, thus jump-starting it like an adrenaline shot.
Once an economy has stablized (ie. back to normal GDP positive growth), you MUST increase taxes and cut gov't spending. This does two main things:
1. It allows the gov't to pay off its debt that which increased greatly during the recession and recovery. If the gov't is seen as being able to pay off its debt, it boosts confidence that the economy is well.
2. It stops INFLATION from EXPLODING and thus causing another major recession!!!
Believe it or not, if the gov't has no debt and there are low taxes, that is not good! It means two things:
1. The gov't is not investing enough in the nation (economy, education, infracstructure, military, technological innovation, research, etc.) Thus the long term forcast is BLEAK.
2. There is too much PAPER money going around! People who should not be rich are somehow rich! This leads to increased INFLATION, and if not reigned it, a big BUBBLE BURST => which leads to a RECESSION.
Yes, it's depressing. Not every one can be rich.