George Stephanopoulos Worries That Tiny 2012 Budget Cuts Will ‘Hurt’ the Recovery and ‘Cost Jobs’
Apparently, cutting the budget by $21 billion hurts the economy. Talking to Treasury Secretary Tim Geithner on Tuesday, Good Morning America's George Stephanopoulos worried about the just-agreed to debt deal: ” But, don't you think that any deficit reduction now will hurt the attempts of the economy to recover ?” The former Clinton White House official turned journalist highlighted “economists who say cuts like this will make our weak economy weaker and cost Americans jobs.” In total, Stephanopoulos raised the question three times, wondering, “So, this won't cost us jobs?” Of course, the anchor didn't point out that there's almost no spending cuts before 2014, a mere $ 21 billion in 2012 and $42 billion in 2013. The GMA host didn't even challenge Geithner's assertion that if the economy regresses into recession, it could be the fault of Republicans who opposed increasing the debt limit. Geithner claimed that the “spectacle” Americans witnessed in Washington really damaged “the confidence, caused a lot of damage to confidence. ” To this, Stephanopoulos could only manage to mildly respond, “To the point where it could cause a double dip?” The journalist also didn't mention that the economy expanded at 1.3 percent in the second quarter or that this was prior to the debt debate. This isn't the first time, the network anchor hit Geithner from the left. On April 22, 2010 , he pressed the Treasury Secretary on financial reform, wondering why the “big banks” shouldn't be “broken up.” A transcript of the August 2 segment, which aired at 7:09, can be found below: GEORGE STEPHANOPOULOS: And now that the deal is all but done we face the big question of what it means for the economy and whether it's strong enough to preserve America's AAA credit rating. I put those questions to Treasury Secretary Tim Geithner in an exclusive interview and began by getting his response to economists who say cuts like this will make our weak economy weaker and cost Americans jobs. TIM GEITHNER: Well, let's start with what this deal does. The most important thing is it creates more room for the private sector to grow because although it locks in some very substantial long-term savings, the near-term costs are very modest. STEPHANOPOULOS: But, don't you think that any deficit reduction now will hurt the attempts of the economy to recover? GEITHNER: Part of governing is recognize we live with- we don't have unlimited resources and we inherited and are left with unsustainable deficits long term and the President understands for the sake of the economy long term it's very important to demonstrate to the American people, to people around the world that we can get our arms around it. STEPHANOPOULOS: So, this won't cost us jobs? GEITHNER: No, it will not. Now, if we put this behind us, then we can turn back to the important challenge of trying to find ways to make sure that we do everything we can to get more people back to work, strengthen growth.
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on August 2, 2011. Filed under