Geithner says that Republican spending cuts are irresponsible and would undermine our economy
As we look over the edge of insolvency, the current administration, namely Geithner, is criticizing a package of 60 BB in spending cuts. 60 BB is way too low in order to make any meaningful difference. It doesn't tackle Medicare, Medicaid and Social Security, and consequently, is still too little too late. But, what we get from the current administration is more spending. Via WSJ:
U.S. Treasury Secretary Timothy Geithner said Saturday that the package of spending cuts the House of Representatives passed earlier in the day would "undermine and damage our capacity to create jobs and expand the economy."
"The United States is going through the beginning of a very important national debate on how to make sure we are strengthening the economy, strengthening growth prospects by putting in place reforms that restore balance to our fiscal position, restore gravity to our fiscal position, and make sure we're going back to living within our means as a country," he said.
The House of Representatives early Saturday voted 235-189 to cut more than $61 billion from current spending levels, a move considered to be the biggest one-time cut in budget history if enacted. Senate Democrats are poised to reject the measure, and prospects for a government shutdown could grow if an agreement isn't reached by March 4.
Mr. Geithner pointed to the package of spending cuts and new spending programs the White House detailed in its budget proposal several days ago as the best way to both reduce deficits while still investing in economic growth.