Doh! A bad time for spending cuts?
July 11th, 2011
02:32 PM ET
3 years ago

Doh! A bad time for spending cuts?

New York (CNNMoney) – Big federal spending cuts are on the way. That's pretty clear. Whether they total $1 trillion, $2 trillion or $3 trillion is anybody's guess. But make no mistake - they are coming.

The cuts - tied to an increase in the debt ceiling - are virtually guaranteed to be some of the biggest in history. But will they hit the economy at a particularly bad time?

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Filed under: Congress • Debt • Deficit
soundoff (11 Responses)
  1. Marie MD

    I want the rich (who have not done a darn thing for the economy in the last 10 years) to pay tyeur fair share of money. Same goes for corporations. As a matter of fact companies that send US jobs overseas should be penalized!
    JOBS RETHUGS! WHERE ARE THE JOBS?????? I hope people are paying attention on the greed of the rethug congress and how they want to kill grandma!!

    July 11, 2011 02:43 pm at 2:43 pm |
  2. The Obama Recession Continues Unabated, Obama Depression on the way

    "We've seen that federal support for states diminish, you've seen the biggest jobs losses in the public sector - teachers, police officers, firefighters losing their jobs," Obama said during a press conference.
    =================================================================================================
    THIS is why there is no recovery. Everything Obama, Reid and Pelosi did made the problem worse. A "Stimulus Bill" that was nothing but handouts to state and local unions to stop states from accepting reality and cutting their spending.

    And just WHY is it the federal governments job to be paying for these jobs? These are local and state responsibilities. They have NO BUSINESS getting involved at this level.

    July 11, 2011 02:52 pm at 2:52 pm |
  3. Rudy NYC

    Spending cuts are worse than tax increases. Most economists agree that the best way to climb out of recession is to increase and stimulate transactions. When the people do not spend, then the government becomes the "buyer of last resort", just like during TARP the government became the "lender of last resort."

    July 11, 2011 02:57 pm at 2:57 pm |
  4. Rudy NYC

    We have already seen a jump in unemployment from large spending cuts at the state level. These Federal cuts will push unemployment over 10% again. Mission Accomplished.

    July 11, 2011 02:59 pm at 2:59 pm |
  5. Republicans - The "Not Intended To Be Factually Accurate" Party

    What would the unemployment rate be if a-half-a-million more, 500,000 people, were EMPLOYED?

    Well, that's how many public sector [police, fire, teachers] have lost their jobs since the President took office. It's not his fault, nor his responsibility yet he fought this through the stimulus package. States are laying off workers now that the Federal Government isn't providing them with money.

    So the next time, a GOPTP'er rails about the unemployment rate, wanting to blame President Obama, you think about those 500,000 people and what employment would be like if they had their jobs. Then you ask yourself, what responsibility does the Federal Government have to manage local affairs like police/fire/education? Place the accountability where it belongs. You should also think about why the GOP, which claims to be for safety, law & order and American exceptionalism is not on the side of police/fire/teachers.

    A thinking voter need only scratch a little below the surface of the Republican talking points to see the hipocrasy and flaws in their logic. Don't endorse them America. Don't fall for the okie-doke.

    July 11, 2011 03:00 pm at 3:00 pm |
  6. FM

    It is always difficult to swallow a bitter pill. These kind of cuts, look like will affect everybody!

    July 11, 2011 03:07 pm at 3:07 pm |
  7. There, I said it

    Spend on Jobs and Housing. WPA, CCC, and OIC. Spend to put money in the consumers hands. The more and better jobs people have, the more taxes they pay. Or we can have a service based economy, may I help you?

    July 11, 2011 03:16 pm at 3:16 pm |
  8. Just As I Thought

    Isn't that the way it always is........the ones who never pay any taxes and constantly stand with their hands out, ready for some politician to fill........they are the ones who say "no time is a good time to cut spending" only when they are FORCED to cut......NOW they are being forced.....why? Because we are BROKE and cannot depend upon our kids and grandkids to pay us out. We can no longer borrow to pay for what is not NEEDED! The majority of poeple on WELFARE do NOT need it, they are simply LAZY! Do yo want PROOF?:
    If there was NO more hand outs, no more welfare, no more Freebees.......what would YOU do?
    The same thing happened when Bill Clinton "ended welfare as we know it" during his eye opening mid-term defeat......80 million people fell OFF welfare; NO oen died, NO one went hungry or did without a NEED...(some wants were left off) and what that 80 million welfare receipients did is; they got up off their butts and got a JOB!

    July 11, 2011 03:19 pm at 3:19 pm |
  9. DumbasRocks [R]s

    The proposed spending cuts would have a much more negative effect on our economy than any of the tax "increases" being talked about.

    If precipitous spending cuts do happen, what I will especially enjoy, and what I will certainly make a point of doing, is saying 'I told you so' to all the mindless [R]etards who will become even more economically distressed. I will pray for the rest of us.

    There can be no doubt now that [R]s wish harm to ths country. They have joined the War on Terror, but on the other side.

    July 11, 2011 03:24 pm at 3:24 pm |
  10. Howard

    Obama only knows how to irresponsibly SPEND other people's money. Obama is destroying America. Save America ... impeach Obama !!!

    July 11, 2011 03:31 pm at 3:31 pm |
  11. Sniffit

    GOP economic plans: working as intended. Until you see Obama leave the WH, be it 2013 or 2017, the GOP will try to ruin EVERYTHING in order to ruin him. It's that freekin simple. What's that? Cuts might hamper recovery and counterbalance private sector job creation with massive public employee layoffs thereby increasing unemployment? SO BE IT? Mission accomplished!!!!

    July 11, 2011 04:12 pm at 4:12 pm |