Bloomberg News

Geithner Says Spending Cuts Alone Won’t Spur Economic Growth

November 15, 2011

Nov. 9 (Bloomberg) -- Treasury Secretary Timothy F. Geithner said the U.S. economy is stronger than when President Barack Obama took office and warned that spending cuts alone won’t spur growth.

“You can’t cut your way to growth,” Geithner said in an interview broadcast today on CNN. “It would make us weaker as a country for us to go out and try to cut our way to growth.”

Republican presidential candidate Mitt Romney has proposed limiting government spending to only “essential” programs and overhauling entitlement programs in a debt-reduction plan that would slash $500 billion from the federal budget by 2016.

“I don’t think there is a Republican plan for tax reform and there’s no Republican plan to create jobs and economic growth,” Geithner said. He spoke to CNN while on a visit yesterday to an Intel Corp. factory in Chandler, Arizona.

Geithner said the U.S. economy “is in a much stronger position today” than when Obama took office in January 2009 “because he was able to put out the financial fires and restart economic growth.”

--Editors: Chris Wellisz, Gail DeGeorge

To contact the reporters on this story: Ian Katz in Washington at ikatz2@bloomberg.net;

To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net


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