Reuters: PALO ALTO, California) – President Barack Obama said on Wednesday he believes the U.S. economy could lapse back into recession if government spending is cut too deeply.
“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
Ahh but plucking acres of grass with tweezers, will also be counter productive.
Why is Obama so afraid of making cuts, and heck committing to anything that does not involve a bonfire and taxpayer money?
He needs to look at both sides of the situation.. he sees spending as a job creating option. But, if businesses were not so strapped, they could hire more people. And businesses are strapped due to all the gov’t spending, PLUS Obamacare on the horizon.
I am curious though,when did the recession end? Per what Obama said, “we could slip back into another recession” that sounds like the recession ended, in his mind anyhow. But a recession involves unemployment, housing prices, cost of living (think utilities, gas, food), spending. Yet foreclosures still are happening, home prices are still sinking, jobs are still scarce, and cost of living is frightening.