February 27th, 2013
10:45 PM ET
10 years ago

Obama: Spending cuts would be bad for business

(CNN) - President Barack Obama is taking his campaign against the forced federal spending cuts - set to take effect on Friday - before business leaders, telling them Wednesday evening that the cuts will be bad for their businesses and cause the economy to "tumble downward."

"Whether that can be done in the next two days," Obama said, pausing mid-sentence, then continuing, "I haven't seen things done in two days here in Washington in quite some time."

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His skepticism comes as the final days before Friday's deadline pass with no sign of frenzied negotiations to broker a last-minute deal. Instead, both sides are engaging in campaign-like tactics in an apparent effort to argue they aren't responsible for what is almost certain to begin at the end of this week.

By 11:59 p.m. Friday, Obama must order a broad spread of federal agencies, including the Defense Department, to cut $85 billion from their budgets over the next seven months, the remainder of the government's fiscal year.

Unlike the last showdown – in late December when tax increases and the sequester were set to trigger – Obama said this is no "fiscal cliff."

"I'm sure you've heard from a number of experts and economists that this is not a cliff, but it is a tumble downward," he told leaders at an event held by The Business Council. "It's conceivable that in the first week, the first two weeks, the first three weeks, the first month … a lot of people may not notice the full impact of the sequester."

Exceptions, he said, could include businesses related to the defense industry, where the cuts are expected to be a larger percentage of their budget. Still, Obama warned, "this is going to be a big hit on the economy."

The White House has announced no public events for the president on Thursday or Friday.

Filed under: Budget • Deficit • President Obama • White House
soundoff (14 Responses)
  1. Donna

    OK, so taking $600 BILLION out of the economy with Obama's tax increases won't hurt the economy but cutting $40-80 billion in federal spending will be the end of civilization? I guess Obama thinks we are all idiots. Obama's tax increases will have TEN TIMES the affect of these cuts. Yet again, he lies to cover his incompetence.

    February 27, 2013 11:05 pm at 11:05 pm |
  2. freedom

    More threats of dread? It is the very policies that Obama himself is enforcing that are bad for business. He is the cause. His buzz words of "cliff" and "sequester" have run their course. Is it really his intention to go through the next 4 years screaming from microphones at podiums? Americans really don't want to see and hear their president and his wife everywhere they turn. This has become invasive – and even a form of harrassment.

    February 27, 2013 11:30 pm at 11:30 pm |
  3. Rogue351

    The GOP does not care how many people these spending cuts hurt, if there is a better way to go about it. All the care about is making the President look bad with one crisis after another. Then they claim the media loves the president. But the media is on the side of the GOP pumping up all of these "crisis" and causing a panic to make a point. Cry wolf to many time media / GOP and NO ONE is going to listen. The GOP / Tea Party Taliban need to come up with a plan that works for America and quick. Because the the current tactics are failing horribly. Dump the NRA, Dump the Tea Party start listening to Governors like Christie and maybe you will have a chance. Don't and we all suffer and the GOP fails. You have been beaten, except it, tolerate it, do whatever you need to do but move on and do your job.

    February 27, 2013 11:45 pm at 11:45 pm |
  4. dennis peyton

    Speaking of bad for business – how about Obama the liar? Ask Bob Woodward what he thinks of this BS. He needs his money for obama care – we all took two percent on the chin after the new year – the fricken government can get by on less than they heaped on us? Hmmmmm – and he had illegal criminals released prior to the funding cuts? Outrageous – he should be inmpeached – this is total bs.

    February 28, 2013 12:17 am at 12:17 am |
  5. John Krats

    They will only be bad for Obama's business.

    February 28, 2013 12:20 am at 12:20 am |
  6. Badboy

    If chicken little wasnt flying around the country crying the sky is going to fall maybe he could bein DC doing his job....lol

    February 28, 2013 12:40 am at 12:40 am |
  7. king

    what can the dems and the president do to stop this sequester? nothing! this sequester was put in to stop the lunatic repubs from shutting down the government after they caused our country rating to go down. but the measures the dems put in to cause the repubs to finally compromise on taxes didnt work. because the president misjudged how lunatic the repubs have become. they are willing to destroy the country just to blame the president. amazing

    February 28, 2013 03:05 am at 3:05 am |
  8. tea party member

    obama needs to take a chill pill. the economy will do just fine. this country needs this first step in getting the federal budget
    under control. our next step should be the dismantling of social security and medicare. i wonder if the liberals will ever learn
    the government spending is not the answer it's the problem.

    February 28, 2013 05:33 am at 5:33 am |
  9. Ray E. (Georgia)

    He knows how to lay it on thick, doesn't he ? As usual he is a day late and a dollar short. Where was he 2 years ago ? Trying to secure the Nanny State. no doubt. What a joke.

    February 28, 2013 06:13 am at 6:13 am |
  10. Steve- Illinois

    What happens when noone notices? Who gets the blame then?

    February 28, 2013 06:49 am at 6:49 am |
  11. CraigM

    What Obama means is that spending cuts would be bad for the Democratic Party and their Socialist agenda.

    February 28, 2013 07:17 am at 7:17 am |
  12. Name lynn

    Obama you an the white house leaders is going into a war, war what is it go for nothing or peace, them white house leaders, an the media an the news is saying its will be a big budget cuts now obama is saying somethig different.

    February 28, 2013 07:24 am at 7:24 am |
  13. Rick McDaniel

    Obam ais what you would have to call.........a business idiot. Nothing he DOES is good for business. Absolutely NOTHING!

    February 28, 2013 07:38 am at 7:38 am |
  14. lapazjim

    Is Obama really working for this country?Or does he have another agenda? Well we are finding out that the monies are going to be cut here,but will continue to flow to the Middle Eastern countries.Ask yourself why is there such a priority to take care of other countries before he takes care of this one(notice I didn't say his own). The U.S. is now going to suffer the consequences of the last election. Is it to late to do a re-vote?

    February 28, 2013 07:56 am at 7:56 am |