PALO ALTO, Calif. — President Barack Obama said Wednesday he believes the U.S. economy could lapse back into recession if government spending is cut too deeply.
Obama made the comment at a Facebook town hall, which he used to promote his proposals for reducing U.S. deficits. He said Republicans are too narrowly focused on spending cuts.
Obama also said the lack of a serious plan to tackle U.S. deficits could become a big drag on the economy if investors pull back.
"If all we are doing is spending cuts, and we are not discriminating about it, if we are using a machete instead of a scalpel, and we are cutting out things that create jobs, then the deficit could actually get worse because we could slip back into another recession," he said.
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