Obama: US Can Reconcile Cutting Deficit With More Growth

Tuesday, 19 Nov 2013 05:20 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

President Barack Obama said the U.S. can cut the deficit and spur economic growth at the same time, and that short-term deficits aren’t the nation’s primary fiscal concern.

The president pointed to the shrinking federal budget deficit while arguing for continued spending on programs that he said will foster growth, such as investments in infrastructure, research and education.

“We are not lavishly spending on a whole bunch of social programs out there,” Obama said today at the Wall Street Journal’s CEO Council in Washington.

Spending cuts and higher tax revenue as the economy improves helped trim the federal budget deficit to $680 billion for the year ended Sept. 30. That’s the lowest in five years and about half the record deficit of $1.4 trillion in 2009.

Earlier at the Journal event, former Obama adviser and Treasury Secretary Lawrence Summers said policy makers should put more focus on steps to boost growth to avoid a prolonged period of economic weakness.

Greater growth would solve the country’s long-term fiscal problems, he said.

Obama said one of the main drivers of the nation’s long- term debt continues to be the cost of health care. Obama said his goal is to make health care "cheaper overall" and direct some of the savings to things like infrastructure and research.

He said that even with its troubled rollout, the health- care law enacted in 2010 is designed to address the growth of health spending.

Negotiators in a House-Senate budget conference committee have failed so far to hammer out a budget spending outline for fiscal 2014, which began Oct. 1. The government is now operating on a stopgap spending resolution which expires on Jan. 15, creating the potential for another government shutdown.

The government’s borrowing limit expires on Feb. 7, and Obama said he doesn’t expect Republicans will again try to use the debt ceiling as leverage to advance policy goals. The standoff earlier this year was a "dangerous precedent," he said.


© Copyright 2014 Bloomberg News. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Yellen: Fed Sees 'Significant' Under-Use of Labor Resources

Friday, 22 Aug 2014 10:22 AM

Federal Reserve Chair Janet Yellen said slack remains in the U.S. labor market even after gains made during the five yea . . .

Russia Convoy Enters Ukraine Without Kiev's Consent

Friday, 22 Aug 2014 10:17 AM

Russia's decision to send a convoy of aid trucks across the border into eastern Ukraine without Kiev's consent or an esc . . .

Widening Wealth Gap: 'Bottom 20%' Worse Off Than in 2000

Thursday, 21 Aug 2014 18:05 PM

A report from the Census Bureau is the latest evidence that the rich are getting richer while the poor get poorer. . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved