Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

White House: GOP responsible for shrinking economy
The Hill ^

Posted on 01/30/2013 10:35:56 AM PST by Sub-Driver

White House: GOP responsible for shrinking economy By Justin Sink - 01/30/13 01:11 PM ET

White House press secretary Jay Carney laid the blame for a surprise economic contraction squarely at the feet of congressional Republicans Wednesday, saying economic threats during the "fiscal cliff" negotiations had prevented important defense spending.

"Our economy is facing a major headwinds, and that's Republicans in Congress," Carney said.

The Commerce Department projected Wednesday the nation's gross domestic product (GDP) shrank by 0.1 percent in the fourth quarter of 2012. Carney said that was partially attributable to the threat of sequestration, which would implement across-the-board spending cuts if a long-term deficit deal is not reached.

"This is political brinksmanship that results in one primary victim. That's American taxpayers and the American middle class," Carney said.

Carney said economic observers were "rightly appalled" by the threat of sequestration or default to drive a debt deal, and charged that Republicans were harming the economy to the benefit of the wealthiest Americans.

"It can't be we'll let sequester kick in because we insist tax loopholes remain in place for corporate jet-owners," Carney said.

Republicans have argued that dire threats are necessary to force Democrats to agree to entitlement reforms and spending cuts. The Republican National Committee on Wednesday circulated a document labeling Obama "President -0.1%" and argued the GDP numbers were evidence the president's stimulus plan had not worked.

The unexpected dip was the first time the economy shrank since the 2009 economic depression, and came as a surprise to economists, who had projected modest growth.

In a statement posted Wednesday morning, Alan Krueger, Chairman of the White House's Council of Economic Advisers said that reduced government spending from the sequester and economic uncertainty stemming from the "fiscal cliff" negotiations was likely to blame. Krueger also said Hurricane Sandy likely disrupted significant economic activity.

"Although GDP is the broadest measure of economic activity, other indicators of economic performance suggest that the economy continued to recover in the fourth quarter, despite the impact of Hurricane Sandy and uncertainty surrounding fiscal issues," Krueger said.

Krueger and other economic advisers pointed to a boost in personal income, disposable income, and worker-hours to argue that the economy was likely outperforming the initial estimate and would be revised upward.

"Moreover, as the Administration stresses with each economic report, indicators of economic performance can be volatile and are subject to substantial revision," Krueger said. "The average absolute revision from the 'advance' estimate of real GDP growth to the most current data is 1.3 percentage points."

The decline also drew new questions about the decision to delay, rather than eliminate, sequestration in the "fiscal cliff" deal struck earlier this month. But despite that delay, defense spending was cut to its lowest level in 40 years — evidence that uncertainty over an eventual deal was preventing spending on new projects. With the sequester delayed just two months, that drag threatens to bleed into a second consecutive fiscal quarter.

The White House has maintained that it wants to avoid the sequester. But when asked Monday on whether the president was planning specific meetings or events to address the topic, Carney said said he did not have "any specifics" to provide.

"We believe that the right course of action is to take steps to make sure that sequester doesn’t happen because it’s bad for the economy and bad overall for the effort to reduce our deficits in a reasonable way," Carney said Monday.


TOPICS: Business/Economy; News/Current Events; Politics/Elections
KEYWORDS: demagogicparty; gdp; jaycarney; partisanmediashills; sequester; sequestration
Carney is full of it.....
1 posted on 01/30/2013 10:36:01 AM PST by Sub-Driver
[ Post Reply | Private Reply | View Replies]

To: Sub-Driver

Whatever happened to “We Won”?


2 posted on 01/30/2013 10:38:36 AM PST by cripplecreek (REMEMBER THE RIVER RAISIN!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Sub-Driver
Everybody in the Hussein administration is a slime slug.
3 posted on 01/30/2013 10:40:36 AM PST by BenLurkin (This is not a statement of fact. It is either opinion or satire; or both)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Sub-Driver

4 posted on 01/30/2013 10:41:42 AM PST by GrandJediMasterYoda (Someday our schools we will teach the difference between "lose" and "loose")
[ Post Reply | Private Reply | To 1 | View Replies]

To: cripplecreek

President “Not Me” trots out the little boy to run cover for Obummer’s complete lack of ability.


5 posted on 01/30/2013 10:41:58 AM PST by Army Air Corps (Four Fried Chickens and a Coke)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Sub-Driver

The oBLAMEa administration. 0bama let go of the steering wheel the day he took office.. He’s probably shocked America’s gone this long without crashing. The crash is what he’s been hoping for and has done his best to stop productivity at every turn. XL pipeline, for one.


6 posted on 01/30/2013 10:43:56 AM PST by Obama_Is_Sabotaging_America (IMPEACH OBAMA)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Sub-Driver
Carney is full of it.....

Of course he is, but if you polled the public I'd bet you'd find that a majority agree with Carney that the Republicans are at fault.

Obama's cult of personality has such a hold on a majority of the American public that when given an excuse (no matter how ridiculous) to blame anyone but Obama, the public will take it. Here the economy just contracted in the 4th quarter and yet Obama won re-election and currently holds a 53% approval rating among likely voters in today's Rasmussen poll.

7 posted on 01/30/2013 10:44:32 AM PST by Longbow1969
[ Post Reply | Private Reply | To 1 | View Replies]

To: Army Air Corps

BO needs to quit blaming Bush for the economy the last 2 years on his watch. It was Congress, Congress, Congress-which by the way, was controlled by democrats. If BO isn’t responsible, then neither was Bush under BO’s logic.


8 posted on 01/30/2013 10:45:19 AM PST by dandiegirl
[ Post Reply | Private Reply | To 5 | View Replies]

To: Sub-Driver

Funny, how when Bush was in office, EVERYTHING WAS HIS FAULT, but now that OBOZO is in office NOTHING IS HIS FAULT............


9 posted on 01/30/2013 10:46:30 AM PST by Red Badger (Lincoln freed the slaves. Obama just got them ALL back......................)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Sub-Driver

Carney - the American version of Baghdad Bob on steroids. No shame, no conscience, no basis in reality .... just like Obama and the rest of his thug-Leftist administration. Carney should be laughed off the podium if the media were remotely honest rather than Obama sycophants. If I weren’t living it, I’d think it was all a bad dream .... that no way this could happen in America. But it has.


10 posted on 01/30/2013 10:47:54 AM PST by MissMagnolia (You see, truth always resides wherever brave men still have ammunition. I pick truth. (John Ransom))
[ Post Reply | Private Reply | To 1 | View Replies]

To: All

The Obama White House reminds me a drunk or drug addict who refuses to own up to their life and the mistakes they made.
In their world, it’s always someone else’s fault.

I am soooo tired of this assclown who resides in the White House. The next four years are going to be brain-sapping not to mention wallet-sapping for all of us.


11 posted on 01/30/2013 10:48:18 AM PST by MplsSteve (General Mills is pro-gay marriage! Boycott their products!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Sub-Driver
The Democrats control every part of the Federal government except for the House of Representatives.

Guess who's always to blame?

12 posted on 01/30/2013 10:52:24 AM PST by andy58-in-nh (Cogito, ergo armatum sum.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Sub-Driver

Got their talking points mixed up today.

Dems Tout Claim: ‘Best-Looking Contraction in U.S. GDP You’ll Ever See’
http://www.weeklystandard.com/blogs/dems-tout-claim-best-looking-contraction-us-gdp-youll-ever-see_698863.html


13 posted on 01/30/2013 10:53:07 AM PST by listenhillary (Courts, law enforcement, roads and national defense should be the extent of government)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Sub-Driver

“Carney is full of it.....”

True, but so what? Americans are stupid and will believe him. He knows that. Watch the polls. I’ll lay cash that the public blames the GOP for this.


14 posted on 01/30/2013 10:55:04 AM PST by DesScorp
[ Post Reply | Private Reply | To 1 | View Replies]

To: dandiegirl

Obama only knows how to blame others. That is what a rastle hustling, poverty pimp community organizer does. “Your problems are not in any way your fault, it is the fault of (insert targeted group here).” Lack of education? Whitey’s fault! You live in the projects? Rich folks’ fault!


15 posted on 01/30/2013 10:59:30 AM PST by Army Air Corps (Four Fried Chickens and a Coke)
[ Post Reply | Private Reply | To 8 | View Replies]

To: Sub-Driver

“Carney said that was partially attributable to the threat of sequestration, which would implement across-the-board spending cuts if a long-term deficit deal is not reached.”

So now the threat of spending cuts that haven’t happened yet reduces GDP ?


16 posted on 01/30/2013 11:05:51 AM PST by PMAS (All that is necessary for the triumph of evil is that good men do nothing)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Sub-Driver

Didnt Obama claim to win the tax battle?


17 posted on 01/30/2013 11:11:19 AM PST by sickoflibs (Losing to Dems and Obama is not a principle! Its just losing.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Sub-Driver

The Incompetent One couldn’t lead a 2 man parade, he’s lazy and a person of mediocre intellect. Carney is so boring, you could fall asleep listening to him.


18 posted on 01/30/2013 11:12:31 AM PST by Marathoner 244
[ Post Reply | Private Reply | To 1 | View Replies]

To: Sub-Driver

.....Denial is NOT a river in Egypt.


19 posted on 01/30/2013 11:14:51 AM PST by Biggirl ("Jesus talked to us as individuals"-Jim Vicevich/Thanks JimV!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Red Badger

yep... and the sad thing is that most stupid idiot low information folks ( half the country ) will believe this.. and the Coming crash, etc , will be all the Republican’s fault..

after all, they read it on the paper or heard it on the news, so it must be true.

Unless we can get a real man to run, a man or woman that American’s can relate too, in a very real sense, someone like Reagan, then we won’t win in 2016, and sorry, while I like Gov Jindal, he ain’t that man. For a couple of weeks, I thought Gov Perry was someone that could fit the bill.


20 posted on 01/30/2013 11:18:58 AM PST by Chuzzlewit
[ Post Reply | Private Reply | To 9 | View Replies]

To: Sub-Driver

Gotta blame it on somebody. It sure isn’t the incompetent Kommie Kids’ fault. Their Marxist “perfessers” told them, although communism has never worked anywhere else, it would work in America because America is “rich”. Fools.


21 posted on 01/30/2013 11:21:41 AM PST by FlingWingFlyer (Now Playing. Obama II - The Revenge of My Father.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Sub-Driver; Revolting cat!; Slings and Arrows
Obama blames GOP for "shrinkage".


22 posted on 01/30/2013 11:28:29 AM PST by a fool in paradise (America 2013 - STUCK ON STUPID)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Chuzzlewit

Palin-Perry 2016?................


23 posted on 01/30/2013 11:33:35 AM PST by Red Badger (Lincoln freed the slaves. Obama just got them ALL back......................)
[ Post Reply | Private Reply | To 20 | View Replies]

To: Sub-Driver

Good News = Bamster
Bad News = GOP

Okay, Okay...I get it now


24 posted on 01/30/2013 11:33:52 AM PST by Ouchthatonehurt
[ Post Reply | Private Reply | To 1 | View Replies]

To: a fool in paradise

"It shrinks?"

25 posted on 01/30/2013 11:40:41 AM PST by Revolting cat! (Bad things are wrong! Ice cream is delicious!)
[ Post Reply | Private Reply | To 22 | View Replies]

To: Revolting cat!
"It shrinks?"

"She must've been practicin' witchcraft or somethin'."

26 posted on 01/30/2013 11:46:48 AM PST by a fool in paradise (America 2013 - STUCK ON STUPID)
[ Post Reply | Private Reply | To 25 | View Replies]

To: Sub-Driver

He’s had a full term already, so the truth is that 0bama has inherited this crap economy from himself.


27 posted on 01/30/2013 12:28:10 PM PST by Trod Upon (Civilian disarmament is the precursor to democide.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Sub-Driver

Obama finally stopped blaming his predecessor (in this case himself) for the mess that he inherited...


28 posted on 01/30/2013 1:16:05 PM PST by Hotlanta Mike ("Governing a great natiorn is like cooking a small fish - too much handling will spoil it." Lao Tzu)
[ Post Reply | Private Reply | To 1 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson