October 17th, 2013
11:09 AM ET
9 years ago

Obama: Default threat and shutdown damaged economy

(CNN) - The government shutdown and threat of U.S. default before the debt ceiling was raised "inflicted completely unnecessary damage (to) our economy," President Barack Obama said Thursday morning at the White House.

He said it slowed the economy's growth and set back employers' plans to hire.

"Just the threat of default ... increased our borrowing costs, which adds to our deficit," he said.

"We'll bounce back from this," Obama added.

"America is the bedrock of the global economy for a reason ... because we keep our word and we (meet) our obligations."

The way business is done in Washington has to change to make a positive difference in the economy, he added.

That starts, he said, with taking a balanced approach to a responsible budget.

Congress should "cut out things we don't need," "close corporate tax loopholes that don't create jobs," and "free up resources for things that do help the country grow," like research and infrastructure, he said.

He passed along a simple message for "all the dedicated and patriotic federal workers" affected by the recent turmoil in government: "Thank you. Thanks for your service. Welcome back. What you do is important. It matters."

soundoff (30 Responses)
  1. Data Driven

    Wish there was some way to take the $24 billion that the rebels cost our country out of their hides.

    You owe us $24 billion, "tea party". Pay up!

    October 17, 2013 11:15 am at 11:15 am |
  2. Winston Smith

    Take notes, tea party advocates. You may believe you know how it all should work, but you've proven for a long time now, that you are clueless. You may or may not embrace this, but you even cost your own party (the republican party), in terms of reputation and dignity.

    October 17, 2013 11:18 am at 11:18 am |
  3. Sniffit

    "There was no economic rationale for all of this,"

    Yes there was, and it was this: "If we cost the nation umpteen billion dollars and slow economic growth, we can continue to point at terrible statistics about the economy and blame it all on Obama, because lord knows the MSM is going to ignore the heck out of the fact that we deliberately damaged the economy's recovery in service of our own self-interest."

    October 17, 2013 11:19 am at 11:19 am |
  4. sonny chapman

    The American PEOPLE need to send Ted Cruz & his Tea Party Anarchists a $24 BILLION Bill for their Temper Tantrum. Hell, Cruz could pay 1/2 of it from all the $ he raised standing up for HIS Principals at OUR Cost.

    October 17, 2013 11:25 am at 11:25 am |
  5. Dominican mama 4 Obama

    The government shutdown and threat of U.S. default before the debt ceiling was raised "inflicted completely unnecessary damage (to) our economy," President Barack Obama said
    -------------------------------------------------
    Part of their goal Mr. President.
    YOU can't have an economy that is recuperating and reporting positive employment numbers that is NOT for you.
    YOU also cannot have a legacy as represented by accomplishing what other Presidents could not and would not: ACA.
    But you WILL have both.
    Against all odds. You will have both.

    October 17, 2013 11:26 am at 11:26 am |
  6. rs

    The irony is very rich and thick. The GOP tried to lay waste to the ACA on their pretense that the ACA was "bad for workers and bad for the economy", and to accomplish their goals they caused the direct unemployment of 800,000 federal workers (most of whom already have had their pay affected by their Sequester law, and have also already been furloughed this year), caused localized uneployment and loss of hours to regions where there are federal employees, unemployment and loss of tourism and related tax revenues around federal lands, and more. The early estimates are the shutdown will cost the U.S. $billion, and may yet impact loan rates and the borrowing ability of the United States.

    Mind you, this is the GOP theoretically trying to make things better....ahem!

    Meanwhile the deficit plummets, and the cost of government is still lower (as per GDP) than anytime since Reagan took office.

    Looks like if you want fical responsibility, the GOP still isn't the answer. Well, at least the insanity has ended for a couple of months.

    October 17, 2013 11:29 am at 11:29 am |
  7. Warren

    The GOP should have to pay any cost it caused by this shut down...

    October 17, 2013 11:29 am at 11:29 am |
  8. Rudy NYC

    I agree with everything that he's said. Unfortunately for the Tea Party, they will now own the economy between now and November 2014. It will be all to easy to point to the Tea Party's self-inflicted wounds to the economy as the cause of any economic slow down for the next year or so. Most especially when they try to pull the stunt again in three months.

    October 17, 2013 11:29 am at 11:29 am |
  9. Dominican mama 4 Obama

    I listened to your entire speech Mr. President.
    You spoke about 3 areas where there was agreement and bipartsan compromise to move forward, yet these bills languish on the House floor.
    "We cannot degenerate into hate".

    October 17, 2013 11:30 am at 11:30 am |
  10. Jim Rousch

    It's time for those in the Tea Party to kneel before the president, admit their sins, and quietly leave the country they hate so much, as they have done everything in their power to destroy it over these past two weeks.

    Through their actions, they have proven to real Americans, and the rest of the world, that they are the true terrorists, and have done what Al Qaeda never could-bring this nation to its knees. With "patriots" like these, who needs to fear terrorists? The Tea Party members ARE the terrorists!

    October 17, 2013 11:30 am at 11:30 am |
  11. Anonymous

    "...........inflicted completely unnecessary damage to our economy"...........
    ---
    Exactly. That is the Tea Party's intent. No matter who gets hurt, what it does to America's standing in the World,
    what the cost is, that is their agenda. They will do it over and over again. Now we know what DeMint's
    plan is. Win- quit- appoint a puppet in your place, take over Heritage, adopt Cruz and kill America.

    October 17, 2013 11:30 am at 11:30 am |
  12. wendel

    the president has more sense than all the repos in congress. We the American tax payer gets to foot the bill for this mess, How do the baggers figure this helps the economy. 22 billion debt for this politically stupid move by stupid stupid people.

    October 17, 2013 11:31 am at 11:31 am |
  13. S. B. Stein

    We need to be consistant which this shutdown showed when we aren't. That needs to change. The people in the House and Senate that found this was worth the while need to have their heads examined because it brought misery and troubles to all including the reputation of the US around the world. You have to wonder if these teapublicans aren't really sleeper Al Qeda agents that were told to create chaos in America.

    October 17, 2013 11:35 am at 11:35 am |
  14. Gunderson

    Aw So,
    Now you admit jobs in limbo not so hot. So lets see what the jobs are this next report. With nothing but can being kicked again you think employers are going to be chomping at the bit to hire? Yes of course and old Gunderson Queen of England.
    But I see you from Missouri. Someone need show you. Good luck with get blood out turnip.

    October 17, 2013 11:35 am at 11:35 am |
  15. ST

    I have a very short sentence to Ted Cruz: "Always Think first before you react"!

    October 17, 2013 11:36 am at 11:36 am |
  16. Rick McDaniel

    Right. Like we have "bounced back" from the worst depression since the 1930's??????

    You were such a liar, you never even admitted it was a world wide depression........you continued to call it a recession.

    You have done absolutely NOTHING to change that. We can't "bounce back" when we are still in the throes of that same depression, in America.

    October 17, 2013 11:36 am at 11:36 am |
  17. Lynda/Minnesota

    "He said it slowed the economy's growth and set back employers' plans to hire."

    And Mitch McConnell (et.al.) replied: "Mission Accomplished" (again).

    October 17, 2013 11:38 am at 11:38 am |
  18. Gunderson

    Sorry. 24 Billion just tip of iceberg. More to come. 24 Billion just big lie. Now 17 Trillion, i can believe.

    October 17, 2013 11:39 am at 11:39 am |
  19. Jeff Brown in Jersey

    Thank you for standing up to them, Mr. President!

    October 17, 2013 11:43 am at 11:43 am |
  20. Marty, FL

    Tea party shenanigans irresponsibly cost America $24 BILLION needlessly.

    Can't wait to vote the incompetent Boehner & his TGOP out 2014.

    October 17, 2013 11:43 am at 11:43 am |
  21. MP

    To think it is only one group is as immature and irresponsible as the House, the Senate, and The White House have been. It is utterly ridiculous that this group considers themselves intelligent leaders. It's a contradiction in terms. And the pointing of fingers? Really? It's time to vote each and everyone of them out. All of them. Ridiculous.

    October 17, 2013 11:55 am at 11:55 am |
  22. rs

    Without being too unkind, this event makes the GOP look like the rank amateurs that they really are. Perhaps they should tattoo large "L"s on their foerheads as a way of wearing their $24-26 billion dollar shame.

    October 17, 2013 11:56 am at 11:56 am |
  23. Malory Archer

    It must really burn the rick mcdaniels of the world that they don't get to beat their chests and bloviate that they "won" and President Obama got "owned" by the rethugs. Good! They better get used to it because this is just the beginning.

    October 17, 2013 12:15 pm at 12:15 pm |
  24. smith

    The shutdown was not just the gop`s fault, the dems and the potus are at fault as well. Being a good leader means be accountable and responsible not blaming others.

    October 17, 2013 12:17 pm at 12:17 pm |
  25. freedom

    You, Obama have damaged not only the economy, but have tried to destroy any moral fiber this country has. We don't need your assessment – you ARE the problem.

    October 17, 2013 12:19 pm at 12:19 pm |
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