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.
Whatever happened to “We Won”?
President “Not Me” trots out the little boy to run cover for Obummer’s complete lack of ability.
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.
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.
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.
Funny, how when Bush was in office, EVERYTHING WAS HIS FAULT, but now that OBOZO is in office NOTHING IS HIS FAULT............
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.
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.
Guess who's always to blame?
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
“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.
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!
“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 ?
Didnt Obama claim to win the tax battle?
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.
.....Denial is NOT a river in Egypt.
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.
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