After Tripling The Budget Deficit, Obama Warns That Too Much Debt Could Lead To A Second Recession
It wasn’t all that long ago that the Obama administration line had it that “elevated deficits are beneficial.” But now that the deficits and debt have become a political millstone around their necks, suddenly the tone has changed:
President Barack Obama gave his sternest warning yet about the need to contain rising U.S. deficits, saying on Wednesday that if government debt were to pile up too much, it could lead to a double-dip recession.
With the U.S. unemployment rate at 10.2 percent, Obama told Fox News his administration faces a delicate balance of trying to boost the economy and spur job creation while putting the economy on a path toward long-term deficit reduction.
His administration was considering ways to accelerate economic growth, with tax measures among the options to give companies incentives to hire, Obama said in the interview with Fox conducted in Beijing during his nine-day trip to Asia.
“It is important though to recognize if we keep on adding to the debt, even in the midst of this recovery, that at some point, people could lose confidence in the U.S. economy in a way that could actually lead to a double-dip recession,” he said.
If Obama were serious about reducing the national debt we could all forgive him his previous profligacy, no? I’d certainly be willing to forgive and forget if we could start a new era of restraint and fiscal responsibility in the Obama administration. The problem is that Obama isn’t really serious about this.
His big plan for reducing the deficits isn’t to cut the reams of unnecessary spending from the federal budget. His plan is to just take more of our money.
