Obama backtracks on comments that private sector is doing "fine"

(CBS News) Just hours after President Obama said the "the private sector is doing fine" and Republican challenger Mitt Romney criticized him for being "out of touch," the president insisted that more work needs to be done to jump-start the economy.

"It's is absolutely clear that the economy is not doing fine, that's the reason I had the press conference," the president said Friday afternoon in response to a reporter's question.

During a news conference about the economy Friday morning, the president sought to explain how the European economic problems could impact the American recovery and pushed Congress to pass parts of his "to-do" list aimed to stimulate economic growth. But during a question and answer session, the president said the private sector is "doing fine," pointing to 27 months of job creation.

But the Romney campaign and other Republicans pounced, taking to Twitter to highlight the president's remark. And Romney told reporters in Council Bluffs, Iowa on Friday that "he's defining what it means to be detached and out of touch with the American people."

Romney added: "It's an extraordinary miscalculation and misunderstanding by a President who is out of touch, and we're going to take back this country and get America working again."

Mr. Obama then walked back his statement later on Friday saying, "If you look at what I said this morning, we've actually seen some good momentum in the private sector... record corporate profits...so that has not been the greatest drag on the economy."

He once again pressed Congress to provide aid to states to employ public sector workers including teachers and provide small businesses with tax breaks to help rejuvenate a sluggish recovery.

Mr. Obama comments come one week after unemployment rate rose to 8.2 percent, which is the first upward tick since June 2011.

However, in the battle over the economy, Romney rejected the president's ideas. "He says we need more firemen, more policemen, more teachers. Did he not get the message of Wisconsin? The American people did. It's time for us to cut back on government and help the American people," Romney said.

[mol3898]

no wonder CBS news is losing viewership. I like at the end how you say. The reason things are done well because local goverments have not been able to hire more workers and had to lay off more workers. Because as we all know nothing makes things better than MORE taxes and more goverment workers!!!

[Leavane2012]

Nevertheless, the Obama Administration has added about 4.2 million jobs which were lost on his watch in just over two years. Unfortunately, this was was not enough because so many jobs were lost in a severe recession starting in 2008. Furthermore, starting in 2008, companies started to send jobs over-seas and still received tax breaks. The ironic fact is few voters know these facts, instead they rely on false political slogans during the 2012 Presidential campaign. Consequently, voters including Democratic and independent voters feel frustrated with the current unemployment of 8.2% http://washington.cbslocal.com/2012/06/08/liberals-threaten-not-to-vote-in-november-over-disappointment-with-obama/.

There are at least five factors to impede Obama's economic agenda: It took almost three years to stop the free falling of the severe economic recession in 2008, the economic and political ideology of Congress, the economic turmoil in Europe - the largest economic domain in the world- economic competition with the second economic power, China, and the limitations of presidential economic budget power due to Article I, section 9, clause 7 of The Constitution of the United States and Article I, section 5, clause 2: Congress is the authority to determine the rules governing its procedures.
Economic frustration and blame game due to lack of knowledge will never contribute to our economic growth. Being well-informed and actively involved in the campaign are the only catalysts to save our country and to protect our personal interest.

[Leavane2012]

Actions speak louder than negative campaigns. Voters need to know what actions the President should perform when Obama's American Jobs Act this year is stuck in Congress with no apparent hope of passage. People need to feel confident in Obama's past economic plan which has provided significant economic progress during 3 years and a half. People need to know the true nature of our current economy rather than a negative slogan. People need to know that due to the economic policy of congress, the Obama Administration has been cutting the 2011 budget to the bone. The author of the diagram in the following website is Paul Krugman, an economic Nobel Prize winner,

Inline image 4

http://maddowblog.msnbc.msn.com/_news/2012/06/05/12066975-giving-new-meaning-to-reckless-spending

That is the reason the unemployment rate is decreasing slowly; a justification for Obama's stance that further spending cuts without steps to increase tax revenues will hurt consumers. Moreover, the 2011 Budget Control Act which includes across-the-board spending cuts, to all federal departments in 2013 is a possible national economic disaster if Congress can't design and pass a budget that more specifically outlines spending cuts totalling $1.2 trillion over the next 10 years.

[TCop]

What voters need to know is businesses will not hire until the Asinine Care Act is repealed and the government stops talking about raising marginal tax rates.

Voters also need to know that Federal revenues continued to increase between 2004-2008, after the tax cuts of 2003. Revenue during the Obama administration has failed to match 2004-2008. Increasing rates will create a lead weight on any fiscal recovery.

[leftcoastrocky]

Is Romney going to back track on this statement yesterday that the country does not need more firemen, policemen or teachers???

[wfw3536]

I guess Obama forgot about the 23 million folks who are unemployed, or the fact that 18% of our work force are un or underemployed. Obama is spending too much time with his rich Hollywood friends.

[credibility2]

The media is disgusting with its rabid pandering of the president. He's disconnected and clueless, which is what his original comments represented. Stop giving this guy additional chances to "change" his story and his intent. Republican presidents and other politicians are never given second changes to change their comments. Why does the media do this? Are they afraid to criticize the president? The president doesn't do well without his memorized script placed in front of him via his teleprompter crutches.

[ammo17]

to be quite honest with you i don`t believe obama wants another term.he knows with the people he has in his cabinet he will never get the economy going in the right direction.

[karlejohn]

Romney has lied so much in this campaign, they are going to put his picture in the dictionary next to the word, "flip floper", and the word, "lier".

[Overruled1]

It's time for us to cut back on government and help the American people," Romney said.
=====================================================================

WHAT? ROMNEY IS OUT OF TOUCH WITH THE AMERICAN PEOPLE.
PRESIDENT OBAMA HAS DONE THESE THINGS.
ALL ANYONE HAS TO DO IS LOOK UP THE CBO REPORT THAT CLEARLY SHOWS THIS PRESIDENT HAS CUT SPENDING IN THE MOST DRAMATIC FORM.
AS A MATTER OF FACT HIS POLICIES ACTUALLY REFLECT THE REPUBLICAN APPROACH INSTEAD OF ADDING TO THE STIMULUS. HONESTLY LOOK THEM UP AND SEE FOR YOURSELVES.
AS I SEE MYSELF AS A SO CALLED LIBERAL, AND FEEL THE PRESIDENT DIDN'T GO ANYWHERE NEAR AS FAR AS HE SHOULD HAVE.

I WILL REMIND YOU ALL OF FDR, HIS ROLE IN OUR WORLD AND HIS PLANS FOR OUR FUTURE WERE CUT SHORT DURING HIS 4TH TERM OF OFFICE.....THE INTRODUCTION OF THE 2ND BILL OF RIGHTS, WHICH IS MY GOAL FOR US ALL, AND SHOULD BE YOURS.
He died in office a hero, and has my respect forever.
The axis powers now have all those rights, we don't.

[boocbsboooooooooo]

LMAO! YOU DUMB LIBS HAVE TO USE CAPS TO BE NOTICED! THIS IS NOT 2008 ANYMORE, AND YOUR REIN OF TERROR IS COMING TO AN END!

[WakeUpPeople001]

"YOU DUMB LIBS HAVE...REIN"

reign

[jim_n_maggie]

Kudos for an outstanding political report.Pelley & company have provided a shining example of a balanced, and unbiased report of the candidates and their views. Your new heights are an accomplishment for which you can be truly proud. You have shown a light on the truth, and allowed discerning voters to judge reality, without suffering subterfuge or propaganda. This type of reporting is a great service to your viewers. You are to be congradulated for your outstanding performance in this matter. Please keep up your good work so that other broadcasters may draw for your sterling example.

The website report on this news story is another matter. It distorts Obama's statement to imply that he means that the private sector economy is doing fine. When in reality, he has repeatedly stated that private sector job creation is doing well in comparison to the government sector's continuing layoffs. He has reiterated over and over and over again that the economy needs substantial improvment in all areas. If you wish to serve the truth and benefit voters, the current and all future Presidents, then you will explain to your viewers the limited resources available to any President to affect meaningfut changes for the economy. That power rests with the legislature in providing financial stimulus in desparate times.This practice has a proven record of success, but is anathema to the neocons in congress. The country would be in much worse condition had it not been for the stimulus provided earlier by congress.