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Obama: We can't just cut our way to prosperity

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    President speaks on effort to avoid automatic spending cuts

  • Duration 6:58
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It's our budget and on our deficit.

These are decisions we'll have real lasting.

Impacts on the strength of -- for a recovery.

Economists.

And business leaders from across the spectrum have said it that our problem is poised for progress.

Importing thirteen.

And we've seen signs of this -- -- -- over the last several weeks.

-- home prices.

Continue to climb car sales that are a five year high.

Manufacturing has been strong and we've created more than six million jobs in the last 35 months.

We've also seen the effects that political dysfunction.

Can have on our economic progress.

The drawn out process for resolving the fiscal -- -- consumer confidence.

The threat of massive automatic cuts for the party start to affect.

Business decisions.

So we've been reminded that while it's critical for us to cut wasteful spending.

We can't just cut our way to prosperity.

Deep indiscriminate cuts to things like education and training.

Energy and national security will cost us jobs.

And will slow down our recovery.

It's not.

The right thing to do for the economy it's not the right thing for folks were out there still looking for work.

And good news is this doesn't have to happen.

For all the drama disagreements that we've had over the past few years.

Democrats and Republicans have still been able to come together and cut the deficit by more than 2.5.

Trillion dollars through a mix.

Spending cuts and higher rates.

On taxes for the wealthy.

Well balanced approach has achieved more than 2.5 trillion dollars in deficit reduction.

That's more than half way towards the four trillion dollars in deficit reduction that economists and elected officials from both parties.

Believe as required to stabilize our debt.

So we've made progress and I still believe.

That we can finish the job with a balanced mix of spending cuts and more tax reform.

The proposals that I put forward during the fiscal -- negotiations.

In discussions with the speaker Boehner and others.

Are still very much on the table.

I just want to repeat.

It feels that I put forward.

The balanced approach of spending cuts and entitlement reform and tax reform that I put forward are still on the table.

I've offered sensible reforms to Medicare and other entitlements.

And my health care proposals achieve the same amount of savings by the beginning of the next decade as the reforms.

That have been proposed by the bipartisan Bowles Simpson fiscal commission.

These reforms would reduce our government's bill.

-- -- -- -- -- -- Happen they're break in my flow all the time.

These reforms would reduce our government's bills by reducing the cost of health care.

Not shifting all those costs on -- middle class seniors or the working -- or children with disabilities but nevertheless achieving the -- savings.

There were looking for.

But in order to achieve.

The full four trillion dollars in deficit reductions that.

It is the stated goal of economists and our elected leaders.

These modest reforms and our social insurance programs.

Have to go hand in hand with a process of tax reform.

So that the wealthiest individuals and corporations.

Can't take advantage of loopholes and deductions that -- available to most Americans.

Leaders in both parties have already identified the need to get rid of these loopholes and deductions.

There's no reason why we should keep them.

At a time when we're trying to cut down on our deficit.

And if we are gonna close these loopholes then there's no reason we should.

Use the savings that we -- and turn around and spend that on new tax breaks for the wealthiest or for corporations.

If we're serious about paying down the -- The savings we achieve from tax reform should be used to pay down the deficit.

And potentially to make our businesses more competitive.

Now.

I think this balanced mix of spending cuts and tax reform is the best way to finish the job of -- -- reduction.

The overwhelming majority.

Of the American people Democrats and Republicans as well as independents have the same view.

And both the house and the senate are working towards budget proposals that I hope reflect this balanced approach.

Having said that I know that they -- budget.

May not be finished before march 1.

And unfortunately that's the date when a series of harmful automatic cuts to job creating investments in defense spending.

Also known as the sequester.

Are scheduled take effect.

So.

If congress can't.

Act immediately on a bigger package if they can't.

Get a bigger package done.

By the time the sequester is scheduled to go into effect.

That I believe that they should at least pass a smaller package.

But spending cuts and tax reforms that would delay the economically damaging effects of the sequester.

For a few more months until congress.

Finds a way to replace these cuts we have a smarter solutions.

There is no reason.

That the jobs of thousands of Americans who work in national security or education.

Or clean energy not to mention.

The growth of the entire economy should be put in jeopardy just because folks in Washington couldn't come together eliminate a few special interest tax loopholes.

Or government programs that we agree.

Need some reform.

Congresses -- -- working towards a budget that would permanently replace the sequester.

At the very least we should give them the chance to come up what this budget.

Instead of making him indiscriminate cuts now will cost us jobs and significantly slowdown or recover.

So we just repeat our economy.

Right now is headed in the right direction.

It'll stay that way as long as there aren't any more self inflicted wounds coming out of Washington.

So let's keep on chipping away at this problem together.

As Democrats and Republicans to give our workers and our businesses to support that they need to thrive in the weeks and months ahead.

Thanks very much and I know that you're gonna have a whole bunch of other questions and that's why -- hired this guy Jay Carney.

Two to take those questions -- there.

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