Breaking: Forced budget cuts will hurt economy, Obama says
February 19th, 2013
11:02 AM ET
2 years ago

Breaking: Forced budget cuts will hurt economy, Obama says

(CNN) – President Barack Obama said Tuesday that forced spending cuts set to take effect March 1 won't grow the economy or create jobs, which he called the top priorities of his administration.

He warned that "people will lose their jobs" if the cuts take effect, and he called on Congress to pass a smaller package to avoid the harshest impacts if a more comprehensive agreement can't be reached in less than two weeks.

Republican ideas, he added, for avoiding forced budget cuts "ask nothing" from the wealthiest Americans or big corporations, saying that the GOP prefers having the reductions take effect instead of having "a single tax loophole" disappear for those who don't need it.


Filed under: Debt • Deficit • President Obama
soundoff (31 Responses)
  1. here we go

    This falls squarely on the GOP. No exceptions. They play with our future while plans, actual plans, are allowed to lay fallow.

    February 19, 2013 11:08 am at 11:08 am |
  2. Lynda/Minnesota

    Well, Mr. President, there is this:

    By now, ALL of America is well aware that the GOP has not only done it's best to stall job creation for the past four years, they apparently - and with old man McCain as their de facto leader - are more then willing to stall job creation for the next four years as well.

    Kinda puts a damper on the GOP meme of a kinder, gentler Grand Old Party, doesn't it? Guess sour grapes McCain is gonna "school" us for supporting you through our efforts of having had the audacity of standing up against voter suppression by literally standing in line for 9 hours to vote, huh?

    Never in my lifetime have I witnessed a political party so anti-America as this new Grand Old Party has become. It quite takes my breath away. John McCain quite takes my breath away as well.

    February 19, 2013 11:14 am at 11:14 am |
  3. WiredweirdinSF

    Didn't you just know that the consumate liar would blame the Republicans instead of the uncontrolled spending by his administration? His solution remember is spend more, it won't cost us one dime more he said. Fill up your gas tax lately?

    February 19, 2013 11:19 am at 11:19 am |
  4. DC Johnny

    You have got to be kidding me. We are only 6 weeks removed from a tax hike on most Americans, including a significant one on the wealthiest Americans, and this diabolical president is back at his class warfare again?

    We accepted $1 in cuts for every $40 in tax hikes, and that wasn't enough. Now he's pretending like the agreement never existed, and is back in campaign mode.

    It's sickening how he plays politics with the future of our once-great nation.

    You think the job market will be negatively impacted by modest cuts across the board? How about when the chicken comes home to roost, and we are forced to pay interest on this ever-growing debt?

    Interest rates won't stay down forever. The Fed can't keep printing money. This is a recipe for real, honest disaster.

    For Obama to stand there at every juncture and pretend that we don't need to cut spending by 10 times what the GOP is asking is near criminal, if not absolutely asinine.

    Yet you libs buy what you hear, almost gladly. You read the surface of every news story and fall right into line. It's amazing how moronic you zombies are, when all facts point to our demise.

    February 19, 2013 11:21 am at 11:21 am |
  5. Guest

    Democrats are laughable under obama and citizens are quickly wising up to the repeated failures. Look at the facts not the LSM talking points you've been fed for four years. The left is most concerned about the social repercussions and where the blame will lie vice having any concern for a real solution(s). You can insult it, call it names, repeat the oft repeated until you convince yourself that it is true but it wont change the facts, everytime the dems get a dollar – they ask for another one and proceed to waste it.

    February 19, 2013 11:31 am at 11:31 am |
  6. rs

    This is what the GOP has wanted all along. They have undermined this administration; failed to offer any real economic package (i.e. the 25 years to balance the budget in the Ryan budget, and their Sequester disaster). They WANT economic instability; they WANT to crash the economy again, they are on the verge of pulling it off. They are now frightened by how their anti-American pogrom will be received, but what they fail to realize is they have been working for the 1% for so long, the rest of us expect to get the shaft from the GOP- and we'll make them pay for it at the ballot box- for a long time to come.

    February 19, 2013 11:32 am at 11:32 am |
  7. rs

    WiredweirdinSF
    Didn't you just know that the consumate liar would blame the Republicans instead of the uncontrolled spending by his administration? His solution remember is spend more, it won't cost us one dime more he said. Fill up your gas tax lately?
    ___________
    Schizophrenic word salad! Can't you for once be responsible for your actions? The Sequester was written and passed in the House, the House controlled by the GOP/TP.
    As far as gasoline (whatever that has to do with anything) unless you want state-run oil companies, that's Capitalism buddy- and our prices are still the lowest in the developed world.

    February 19, 2013 11:36 am at 11:36 am |
  8. PatheticCNN

    Breaking News Insurance Premiums for Youth ages 18-25 have gone-up by as much as 35% due to provisions in the Affordable Care Act "Obama Care". But You will NEVER see This Just In on CNN.

    February 19, 2013 11:38 am at 11:38 am |
  9. rs

    DC Johnny
    You have got to be kidding me. We are only 6 weeks removed from a tax hike on most Americans, including a significant one on the wealthiest Americans, and this diabolical president is back at his class warfare again?
    ______________
    GOP denial is strong today. Taxes went up on those earning more than $450,000. We STILL have the lowest tax rates in a generation. We need to go back to the top tax brackets we had under the last good Republican President- Eisenhower- 90% for the top wage earners. It worked then, it will work now.

    February 19, 2013 11:39 am at 11:39 am |
  10. PatheticCNN

    I can't believe this article. It works really hard to blame Republicans and to make it look like Obama and the Dems are in a catch 22. I wish CNN would be more honest in it's reporting.

    February 19, 2013 11:44 am at 11:44 am |
  11. rs

    Guest

    The left is most concerned about the social repercussions and where the blame will lie vice having any concern for a real solution(s). You can insult it, call it names, repeat the oft repeated until you convince yourself that it is true but it wont change the facts, everytime the dems get a dollar – they ask for another one and proceed to waste it.
    _____________________
    Well, duh!
    Certainly "the left" (whatever THAT means) is more concerned about the "social repercussions- that's because we're talking about real-live people, and their lives. The GOP sees the American citizen as a "problem" (like Romney's 47% gaffe). Your party is paying for that now in lost elections. Elections you will continue to lose as long as you wee the working man, the poor, and the elderly as some entity to be punished and NOT as people.
    Sure- end unemployment compensation (what happens then?); cut Social Security and Medicare (and what happens then?); cut education (and what happens then?)
    What happens is real lives of real people get hurt- just so a few rich people can keep a little more profit (offshore).

    February 19, 2013 11:49 am at 11:49 am |
  12. yanni

    Mr. President Take GOP to the people's court and that is the only left solution. The GOP only afraid to loss an election may be when they about to lose their job they will do the right thing.

    February 19, 2013 11:53 am at 11:53 am |
  13. Evergreen

    What's wrong with closing tax loopholes and ending subsidies for corporations? A weakening economy will hurt businesses more than scaling back some of these perks. A weakening economy will stop your customer spending.

    February 19, 2013 11:54 am at 11:54 am |
  14. Ray E. (Georgia)

    Um, by the way folks,
    You can vote yourself a pay raise but try to collect it.

    February 19, 2013 11:59 am at 11:59 am |
  15. Rudy NYC

    WiredweirdinSF

    Didn't you just know that the consumate liar would blame the Republicans instead of the uncontrolled spending by his administration? His solution remember is spend more, it won't cost us one dime more he said. Fill up your gas tax lately?
    ---------------
    Actually, increased spending during economic slowdowns and recesions has been a hallmark of past GOP administrations. Have you forgotten about the George W. Bush stimulus that was signed into law summer of 2008? Have you forgotten about the increased spending by Reagan to climb out of his two self-inflicted recessions? Or do you just simply believe whatever you're told by someone praising "freedom and liberty"?

    February 19, 2013 12:00 pm at 12:00 pm |
  16. bob

    Look, Obama doesn't help when everytime the spending cuts get brought up his first answer is raise taxes and spend more. That is not going to solve our problem nor is it going to create jobs. the only thing that will create jobs is poeple going out and working. There are lots of lower level jobs that are not being filled because millions prefer to sit on unemployment for 2 years before looking for a job by which time they have no relevant experience decided to get a job get fired then go back on unemployment. there are 25,000 long haul trucking jobs that need to be filled. These are the beginnings of kick starting the economy. As for more taxes on the wealthy anyone who thinks that taking more money from those that hire people and run businesses is going to somehow magically create jobs needs to go back to school. This is to blame on all of them. Obama needs to allow cuts to his precious entitlement programs that bought him an election. guess who is going to lose when the country goes bankrupt. the entitlement folks. Their benefits will vanish overnight and I will be there to point a finger and laugh at their poor planning.

    February 19, 2013 12:05 pm at 12:05 pm |
  17. livingston

    The American people are well aware the GOP are doing their best to bring America to it's knees. If a foreign power tried to do as much damage to the country as the GOP we would be at war with them. Alas, all we can do is vote them out of office. Every last one of them.

    February 19, 2013 12:06 pm at 12:06 pm |
  18. Ancient Texan

    Cutting spending? No way....But I will be in favor of MORE tax increases. I still owe folks for my re-election.

    February 19, 2013 12:06 pm at 12:06 pm |
  19. Ray E. (Georgia)

    rs,
    Go back to Tax Rates during the Eisenhower Adminstration? Why do you think everybody has moved to China???

    February 19, 2013 12:08 pm at 12:08 pm |
  20. Fair is Fair

    Hey Obama –

    Here's a clue for you... runaway spending, $1.5 Trillion annual deficits, and $16.5 Trillion of accumulated debt hurt the economy MORE.

    February 19, 2013 12:09 pm at 12:09 pm |
  21. Rudy NYC

    DC Johnny

    You have got to be kidding me. We are only 6 weeks removed from a tax hike on most Americans, including a significant one on the wealthiest Americans, and this diabolical president is back at his class warfare again?

    We accepted $1 in cuts for every $40 in tax hikes, and that wasn't enough. Now he's pretending like the agreement never existed, and is back in campaign mode. ... ... ....
    ----------------
    Obviously you've been trained to forget about the one trillion in spending cuts enacted by the House in spring of 2011. Here let me help you remember. The Tea Party threatened to shut down government over a Continuing Resolution that needed to get passed to keep it funded. This fiasco set the stage for the "let's default on our credit" standoff that summer, which in turn led to the Sequestration Bill.

    February 19, 2013 12:23 pm at 12:23 pm |
  22. Al-NY,NY

    Ancient Texan
    I still owe folks for my re-election.
    --–

    Their ROI is certainly better than Rove, the Koch Brothers and the walking corpse Addelman who got 0

    February 19, 2013 12:27 pm at 12:27 pm |
  23. Sniffit

    "Here's a clue for you... runaway spending, $1.5 Trillion annual deficits, and $16.5 Trillion of accumulated debt hurt the economy MORE."

    No they don't. Not even in the same ballpark. You won't get an expert economist to agree with your statement in a million years unless you go searching for some right wing ideologue who denies all things Keynesian as some sort of autonomic reaction and is getting a paycheck for his appearance on Faux News. Krugman has been right about EVERYTHING so far and the GOP/Teatrolls' attempts to keep the eeconomy bad under Obama are nothing more than their attempts to paper over it all and create the APPEARANCE that it was Obama's Keynesian policies, not their obstruction, that prevented recovery. They are on the cusp of having their ideology fully and irrevocably disproven and are desperately doing anything and everything they can to prevent it and shift the blame.

    February 19, 2013 12:29 pm at 12:29 pm |
  24. Pam from Iowa

    Seriously, is anyone expecting the GOP to do anything but further their warped agenda???
    They cannot turn their backs on their campaign financiers, now can they?

    February 19, 2013 12:32 pm at 12:32 pm |
  25. Guest

    Simpson and Bowles...those right wing idealogues. One guarantee I can make is that obama will never let a crisis of his own making go to waste.

    February 19, 2013 12:34 pm at 12:34 pm |
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