White House warns of deeper economic crisis
December 8th, 2010
04:46 PM ET
9 years ago

White House warns of deeper economic crisis

WASHINGTON (CNN) –- In a dramatic escalation of the rhetoric over President Obama's controversial tax cut deal, senior White House economic adviser Larry Summers warned Congress on Wednesday that failing to pass the legislation could lead to a double-dip recession in 2011.

"If they don't pass this bill in the next couple weeks it will materially increase the risk that the economy would stall out and we would have a double dip," he told reporters at a White House briefing.

Filed under: Economy • White House
soundoff (14 Responses)
  1. Chessnutz of Liverpool NY

    When are we going to stop denying that we will double dip. nothing is going to prevent this unless our Government starts to cut spending.

    December 8, 2010 04:49 pm at 4:49 pm |
  2. Dutch/Bad Newz, VA

    I don't see how a failed economic policy(Bush tax cuts) being retained is going to prevent us from having a double dip recession. Not to mention, until the foreclosure crisis is resolved, there will always be fears of a double dip recession.

    December 8, 2010 04:57 pm at 4:57 pm |
  3. Anonymous

    I wish I could go to the bank and take out some money to pay my bills and not tell the banker that everything will be ok as the bankers will be able to pay off my loan. Please just stop giving out moey and pay down our debt.

    December 8, 2010 05:02 pm at 5:02 pm |
  4. Name king

    The economy is in need of demand power, we keep giving money to supply side of the ail. The problem is they can't do nothing until they get customers. America is in bad need of customer power. We have alot of folks but they have no money to drive up demand from stores so stores can hire people to help out with customer demand. I agree with the president to give unemployment checks to the out of work folks, now you have more folks with money to drive up demand. I don't agree with extending the bush tax cut to the rich since they don't spend money in the economy, and their corporations won't invest until they see demand growing to sustain them and make a profit.

    December 8, 2010 05:09 pm at 5:09 pm |
  5. Take America Back from the Libs

    I am assuming that Obambi and his Liberal Cronies knew this all the time.....and if so, why wait until now to address it???? This simply proves this president and this administration do not have a clue of what to do and more so.....they could care less!....Idiots....

    December 8, 2010 05:30 pm at 5:30 pm |
  6. Ramey

    We are in for some major financial strains the next two years and Democrats are going to guarantee another GOP sweep if they do not act reasonbly. The Congress is going push it through because they have no other choice because come January 1st Republcians are going to have even more bargaining power. The people that will be hurt most will be lower and middle class if no action is taken as economists have stated. You won't see any rich people missing any credit card payments or meals if Democrats fail to act.

    December 8, 2010 05:33 pm at 5:33 pm |
  7. B

    Isn’t it interesting that the Republicans and the Tea Party’s entire propaganda push in the last midterm was the deficit and their determination to do something about that! Now they just Blackmailed the president on necessary legislation to help middle class working people, to get their GD tax breaks for the wealthiest few in the country...

    The GOP leadership are liars, hypocritical, and unpatriotic as can be possibly imagined!
    It is no wonder that this country is headed for big time problems in the near future and most of these headaches started with the GOP’s God, Ragan... I am in my sixties now and I can’t remember a more unconscionable bunch of self serving, greedy,people in my life!

    December 8, 2010 05:53 pm at 5:53 pm |
  8. Sniffit

    "Take America Back from the Libs

    I am assuming..."

    And that's all we needed to know. Ass-u-me...i.e., not a shred of factual or evidentiary support, just assumptions.

    Hey, genius, you do realize that (a) Obama, the Dems and expert economists have been warning of a double-dip for several months now, (b) that not a single expert blames it on Obama's/the DEms' policies...because if it occurs, there was really no stopping it and (c) there is strong factual backup for the claim that even if Obama and the Dems didn't send us rocketing off into economic bliss, their policies stopped the nosedive...you do realize that those are all pretty much well-established facts and that the only people denying them are the partisan hacks like Limbaugh, Beck, the cast of the FAux News Muppets and their horde of brainwashed talking opint parrot minions? The information is all available at your fingetips thanks to Al Gore inventing the intertubes haha. Perhaps spending some time looking it up, reading it, resisting the urge to rationalize it away just because it contradicts your preconceived ASSUMPTIONS and then assimilate it...perhaps that would be a better way to spend your intertubes time than just repeating ASSUMPTIONS and baseless talking ideological points.

    December 8, 2010 05:58 pm at 5:58 pm |
  9. Nini

    What happened to the summer of recovery? and the beautiful rose picture Obama and Biden painted?

    If we re taking the nose dive I rather know. STOP lying and tell the truth.

    December 8, 2010 06:09 pm at 6:09 pm |
  10. Peter s

    Its people like you "Take America Back from the Libs"
    "I am assuming that Obambi and his Liberal Cronies knew this all the time.....and if so, why wait until now to address it???? This simply proves this president and this administration do not have a clue of what to do and more so.....they could care less!....Idiots".... ITS PEOPLE LIKE YOU STUFFED WITH TEA BAGS IN YOUR SILLY HEAD WHO ARE DRAGGING AMERICA BEHIND!! wake – up whoever you are and smell the progress moron!!!

    December 8, 2010 06:19 pm at 6:19 pm |
  11. The GOP are evil

    Look, just ignore the GOP since they got us in this economic mess. They're only going to make things worse. The president is trying to do everything he can to keep us out of a depression and get jobs into this country. If the Rethuglicans would stop trying to destroy America and Americans, then we could pull out of this vicious slump.

    December 8, 2010 06:37 pm at 6:37 pm |
  12. GonzoinHouston

    If everyone will think back to when the tax cuts were first passed, the greatest objection to them was that they went mainly to benefit the rich. If we allow them to expire, the bulk of the tax increase logically will go to the rich as well. This deal should be shot down just to see what the pubbers will offer next to get a tax cut for their one true constituency.

    Remember, they filibustered and voted down an extension of these cuts for 98% of the people. If the rich don't get theirs, then nobody does.

    December 8, 2010 06:58 pm at 6:58 pm |
  13. Bessy

    Just more scare tactics. Why not ? It worked for Bush all the time he was in office.

    December 8, 2010 08:19 pm at 8:19 pm |
  14. T'sah from Virginia

    Yep – you saw how the MARKETS soared when those rich people found out they have millions more to play with – they began gambling – not CREATE JOBS – but "gamble" in the markets!!!!

    Now, take back all of that money they THOUGHT they were going to make and there is a PANIC – market DROPS – more "hoarding" – NO JOBS (if there were going to be any in the first place)!!

    NOW, the FEAR-MONGERING begins – Should we BELIEVE IT – or should we think once again, they are trying to pull the wool over our eyes just to get over???? Looks like congress will be there another Christmas Eve!!!

    December 8, 2010 08:29 pm at 8:29 pm |