White House: Congress inaction threatens economy
December 21st, 2011
12:00 PM ET
3 years ago

White House: Congress inaction threatens economy

Washington (CNNMoney) – A top White House economic adviser said that congressional deadlock on extending payroll tax cuts and unemployment insurance benefits threatens the U.S. economy, in excerpts of prepared remarks released Wednesday.

Alan Krueger, the chairman of the Council of Economic Advisers stresses the economic importance of keeping the 2% payroll tax cut and emergency unemployment benefits to more than 160 million American workers.

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Filed under: Alan Krueger • CNNMoney.com • Congress • Taxes • White House
soundoff (53 Responses)
  1. Rudy NYC

    Pa_outofwork wrote:
    "We need a Constitutional amendment to give the people a mechanism to fire members of Congress more rapidly than a recall election. "
    -–
    It's called term limits, we need it now
    =======================================
    The immediate problem is with the Tea Party freshmen. They have no clue what they are doing, and simply don't care what their actions do to others.

    December 21, 2011 12:45 pm at 12:45 pm |
  2. Logic in LA

    Really? Show me one sign that tax cuts have helped? I understand the extended benefits fro unemployment kind of. But since I know several people that aren't even looking because of those benefits, maybe what is needed is a kick in the pants for some. But the payroll cut is only taking money needed to get us out of debt. End it.

    December 21, 2011 12:46 pm at 12:46 pm |
  3. Failure is a Republicon value.

    When will the GOPers grasp the reality that our government is non-profit and wanting to implement for-profit methods leads to all out corruption – like in the BUSH/CHENEY regime. That's why the GOP feeble attempt to run a government always ends in failure, debt, and destruction.

    December 21, 2011 12:48 pm at 12:48 pm |
  4. MTATL67

    Heck yes it will. When peoples pay checks drop $40 to $100 they will feel it and so will the economy

    December 21, 2011 12:51 pm at 12:51 pm |
  5. Fair is Fair

    "This will become a semnal moment. The sacri-pledges are at stake. Republican credibility is at stake. The Republican Party lacks leadership and is facing a looming existential crisis because it cannot control its' own."
    ------–
    Hey Rudy... don't you ever get tired of listening to yourself emoting? You're really a legend in your own mind, aren't you? Believe me I'm no fan of seeing taxes go up on ANYONE... but if they're going to go up, they should go up on EVERYONE.

    December 21, 2011 12:52 pm at 12:52 pm |
  6. Four and The Door

    Rudy NYC
    Fair is Fair wrote:
    Let it expire.
    ---–
    They can't do that.
    _______________________________________________________________________________________________
    They can. In fact, they probably just did. And I am proud of Speaker Boehner for his insight and leadership. He was clear on what was needed and what was not acceptable to the House of Representatives. A 2 month 'dodge-the-decision" game is not acceptable.

    I'm just a little surprised that liberals will let Obama get away with making housing more expensive.

    December 21, 2011 12:52 pm at 12:52 pm |
  7. Rudy NYC

    Logic in LA

    Really? Show me one sign that tax cuts have helped?
    -----------------
    Unemployment is down over a half of a percentage point from last year this time. I understand your concerns about the payroll tax cut, but you can rest easy. The new jobs that are created will increase the number of working people per recipient. That ratio is the best measure of the success or failure of the entitlement programs.

    December 21, 2011 12:55 pm at 12:55 pm |
  8. stevie

    The headline should read, "Obama inaction threatens economy". Obama himself sais on Saturday that it should be a one year extension, not a 2 month extesion. Pure politics from the Great Divider.

    December 21, 2011 12:58 pm at 12:58 pm |
  9. Sniffit

    "Stealing money from social security to artificially prop up the economy threatens social security more than it does the economy."

    WRONG. The legislation is written to cover any reduction in revenue to the SS fund....but you go on ahead and keep trying to take advantage of the MSM purposefully keeping people in the dark about it.

    December 21, 2011 12:58 pm at 12:58 pm |
  10. The LONE OKIE

    The Senate is gone home for Christmas.

    December 21, 2011 01:00 pm at 1:00 pm |
  11. Sniffit

    "They blatantly dodged the issue and reneged on a deal negotiated by the their fellows."

    Indeed. Their cowardice is legendary on this one. This morning, when Hoyer took the podium and began asking for a unanimous consent vote, GOPer Fizpatrick (who was covering for Boehner as Speaker while Boehner mugged for the acmeras in his office and made ridiculous claims about not being at fault for gridlock and the payroll tax cut crisis)...Fitpatrick literally just walked off the House floor in order to prevent Hoyer's request. They are craven.

    December 21, 2011 01:01 pm at 1:01 pm |
  12. Anonymous

    Fair is Fair

    Let it expire.
    =====================

    Why?

    December 21, 2011 01:01 pm at 1:01 pm |
  13. Name

    Fire all the politicians. From the preisdent'down. People are tired of the games

    December 21, 2011 01:03 pm at 1:03 pm |
  14. John

    Once again the GOP shows their true colors. They only care about the 1%. Payroll tax cut for the Middle Class is not for sale and can not be used as a bargaining chip...

    December 21, 2011 01:06 pm at 1:06 pm |
  15. Woman In California

    I only have one vote and I FULLY intend to make the best of it by voting ALL republicans OUT of office. They are a menace to OUR society and their only goal is to destroy our president at the cost of the American people. They ALL need to be shown the door and given at least four years to sit in a corner and remember WE THE PEOPLE have had enough of their ignorance, lies and spiteful behavior. We also need to let them know their dispositions are not welcome in the House or the Senate. Let's send a clear message in 2012 that we have had enough!

    December 21, 2011 01:07 pm at 1:07 pm |
  16. Independent Voters

    These republican are teaparty taliban who hate american we will vote all these retards out of the office.
    It not president Obama faught that this country is in recession I blame these do nothing republican.
    Boehner, Cantor, McConnell pack your bags because we sending you do nothing to the unemploye line.

    December 21, 2011 01:08 pm at 1:08 pm |
  17. Terry,Va

    If our economy which Obummie refuses to take responsibility for is so weak that it is dependaent on reduction of money going into Social Security and giving more money to people who have laid on the couch for 2 years already, I say let the country and Obummie collapse. All Obummie knows is to rob from one fund (ie:Social Security) to pay for something else. If that fails he wants to take half of everything people own to give to those that don't contribute. All Obummie wants is a welfare society dependent on government so he can remain the "food stamp and welfare prez". I can't tell you how disguised I am at him for the class warfare he is promoting which is tearing this nation apart.

    December 21, 2011 01:08 pm at 1:08 pm |
  18. Rudy NYC

    Failure is a Republicon value. asked

    When will the GOPers grasp the reality that our government is non-profit and wanting to implement for-profit methods leads to all out corruption ....
    -------------
    They know that. They have known it all along for decades. The entire argument is just a big smoke screen to rationalize the capricious and ridiculous policies they try to enact for their special interest sponsors. For example, the term "trickle down" was invented by a Reagan campaign strategest.

    Reagan first used the term to justify his plan to fund a tax cut for the wealthy by using the surplus in the SS fund. which he called "returning the people's money to the people". He acknowledged that the middle class created the fund, and that it would be unfair to turn around and give it to the wealthy. He rationalized, "...the money will trickle down from the wealthy to the middle class as the spend it on expensive goods." He later refined it to include "job creation." "Job creators" is a Bush43 invention.

    December 21, 2011 01:09 pm at 1:09 pm |
  19. GI Joe

    I see the paid shills are out in force for the republican propaganda machine today. Getting that extra Christmas $$ ?

    December 21, 2011 01:12 pm at 1:12 pm |
  20. Sniffit

    "I think a new position should be created for Michelle Bachmann – Sectretary of Misinformation."

    Clearly...and she's on the Intelligence COmmittee for crying out loud. It was a pattern for the GOP in terms of how they set up their committees...putting the exact worst person in charge. For example, Barton, the guy who apologized to BP after BP wrecked the Gulf, was made chairman of the Energy Committee...and they made Shimkus, the guy who literally quoted the Bible in a hearing as proof that there's no way man's actions can affect the climate, chairman of the subcommittee on Environment and the Economy. Anyone who doesn't recognize that the GOP is breaking the federal gov't on purpose just so they can say "we told you so, gov't is the problem and is always broken...let's just get rid of it!!!!" just isn't paying attention whatsoever.

    December 21, 2011 01:14 pm at 1:14 pm |
  21. EatRunDive

    For those with short memories, the Republicans threatened the economy as soon as Obama took the oath of office. And they have not created a single job since, although they did get their wealthy cronies a nice was of cash to continue investing in Asia.

    December 21, 2011 01:15 pm at 1:15 pm |
  22. ConcernedDad

    The payroll tax cut is political candy. The various media outlets are now publishing stories which demonstrate the negligible effect these "cuts" will have on the overall economy. The add-ons are questionable as well (the "Doc-fix" is needed until we can unravel this mess that has become Medicare). Both parties are foundering right now but I can honestly say that the Republicans aligned with the Tea Party has stuck to their campaign promises. They have actively and vigorously sought to address the debt. Given the number that were voted in to office last year, you have to assume that the American voting public wanted this sort of action to be taken. I did.

    December 21, 2011 01:17 pm at 1:17 pm |
  23. Truth and Nothing But the Truth

    The immediate problem is with the Tea Party freshmen. They have no clue what they are doing, and simply don't care what their actions do to others.
    ----------------------------------------------------
    Right, Senate Democrats haven't done a dang thing ALL YEAR and the ones passing legislation are the problem? Talk about an upside down logic! They are doing exactly what we want them to do. They should continue doing what they are doing. They WILL be re-elected and they will have even more like them.

    December 21, 2011 01:18 pm at 1:18 pm |
  24. Rudy NYC

    Fair is Fair wrote:

    Hey Rudy... don't you ever get tired of listening to yourself emoting? You're really a legend in your own mind, aren't you? Believe me I'm no fan of seeing taxes go up on ANYONE... but if they're going to go up, they should go up on EVERYONE.
    ----------------–
    Duh, uh, uh. Eliminating the the tax cut will raise taxes on EVERYONE.

    Please, I apologize for the need to debunk your claims so thoroughly. You know it is not personal against you.

    December 21, 2011 01:22 pm at 1:22 pm |
  25. PA_outofwork

    @ Rudy NYC "The immediate problem is with the Tea Party freshmen. They have no clue what they are doing, and simply don't care what their actions do to others."
    ---–
    The Tea Party member are doing exactly what they were voted in to office to do !
    we have the Democratic Party in Congress and Obama, the Obama administration driving this nation into bankruptcy. Obama; the Democrats / liberals better be prepared for huge loses 2012.

    December 21, 2011 01:23 pm at 1:23 pm |
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