Axelrod Defends Stimulus; GOP Bashes It
A senior White House adviser said Sunday the economic stimulus package has not yet "broken the back of the recession" but set aside calls for a second massive spending bill. Republicans, meanwhile, called spending under way a failure.
White House adviser David Axelrod urged patience for President Barack Obama's $787 billion economic stimulus package in the face of sliding poll numbers. Former Massachusetts Gov. Mitt Romney, a past and potentially future presidential candidate, said the spending was ill-designed and served only to expand the size of government.
Republicans have seized on the public's growing unease over government debt and spending to challenge the popular president. Sensing their own vulnerabilities, Obama's top advisers have ramped up their defense of spending that is incomplete and going slower than many had hoped.
"You know, we take the long view on this. Look, when the president signed the stimulus package - the economic recovery package - he said it's going to take a while for this to work," Axelrod said. "And we're going to go through some rough times, and unemployment is going to go up, and ... we have to work our way through this."
Some economists and business leaders have called for a second spending bill designed to help guide the economy through a downturn that has left millions without jobs. Axelrod said it's too early to know if more spending would be needed or if the administration would seek more money from Congress.
"Most of the stimulus money - the economic recovery money - is yet to be spent. Let's see what impact that has," Axelrod said. "I'm not going to make any judgment as to whether we need more. We have confidence that the things we're doing are going to help, but we've said repeatedly, it's going to take time, and it will take time. It took years to get into the mess we're in. It's not going to take months to get out of it."
Republicans, though, aren't waiting.
"I don't think the stimulus that was passed is going to be much help," Romney said. "The stimulus that was passed was, unfortunately, focused more on government and creating employment inside government than it was creating jobs in the private sector."
Another Republican, South Carolina Sen. Lindsey Graham, said Obama and his Democratic allies rammed through the spending bill without Republican support or significant input.
"He missed a chance to have a bipartisan stimulus package that would have created more jobs and helped people who'd lost their jobs," Graham said. "I hope they'll rethink it."
In the meantime, the current spending isn't doing enough, Republicans said.
"For the millions of extra people who are going to be unemployed, it has not been successful," Romney said. "It has failed in delivering the stimulus that was needed at the time it was needed."
Axelrod acknowledged the economic challenges and unemployment inching close to 10 percent nationally.
"Well, there's no doubt that ... we have not broken the back of the recession," he said. "No one's happy with that number."
Axelrod appeared on ABC television's "This Week" and NBC's "Meet the Press." Graham and Romney appeared on NBC.
The Commerce Department said Friday that households had pushed their savings rate to the highest level in more than 15 years in May, as a big boost in incomes from the government's stimulus program was devoted more to bolstering nest eggs than increased spending.
The higher savings rate is healthy in the long term, economists said. But without vigorous consumer spending, the government may have to do more to revive the economy, possibly through further tax breaks and spending.
© 2009 CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report. White House adviser David Axelrod urged patience for President Barack Obama's $787 billion economic stimulus package in the face of sliding poll numbers. Former Massachusetts Gov. Mitt Romney, a past and potentially future presidential candidate, said the spending was ill-designed and served only to expand the size of government.
Republicans have seized on the public's growing unease over government debt and spending to challenge the popular president. Sensing their own vulnerabilities, Obama's top advisers have ramped up their defense of spending that is incomplete and going slower than many had hoped.
"You know, we take the long view on this. Look, when the president signed the stimulus package - the economic recovery package - he said it's going to take a while for this to work," Axelrod said. "And we're going to go through some rough times, and unemployment is going to go up, and ... we have to work our way through this."
Some economists and business leaders have called for a second spending bill designed to help guide the economy through a downturn that has left millions without jobs. Axelrod said it's too early to know if more spending would be needed or if the administration would seek more money from Congress.
"Most of the stimulus money - the economic recovery money - is yet to be spent. Let's see what impact that has," Axelrod said. "I'm not going to make any judgment as to whether we need more. We have confidence that the things we're doing are going to help, but we've said repeatedly, it's going to take time, and it will take time. It took years to get into the mess we're in. It's not going to take months to get out of it."
Republicans, though, aren't waiting.
"I don't think the stimulus that was passed is going to be much help," Romney said. "The stimulus that was passed was, unfortunately, focused more on government and creating employment inside government than it was creating jobs in the private sector."
Another Republican, South Carolina Sen. Lindsey Graham, said Obama and his Democratic allies rammed through the spending bill without Republican support or significant input.
"He missed a chance to have a bipartisan stimulus package that would have created more jobs and helped people who'd lost their jobs," Graham said. "I hope they'll rethink it."
In the meantime, the current spending isn't doing enough, Republicans said.
"For the millions of extra people who are going to be unemployed, it has not been successful," Romney said. "It has failed in delivering the stimulus that was needed at the time it was needed."
Axelrod acknowledged the economic challenges and unemployment inching close to 10 percent nationally.
"Well, there's no doubt that ... we have not broken the back of the recession," he said. "No one's happy with that number."
Axelrod appeared on ABC television's "This Week" and NBC's "Meet the Press." Graham and Romney appeared on NBC.
The Commerce Department said Friday that households had pushed their savings rate to the highest level in more than 15 years in May, as a big boost in incomes from the government's stimulus program was devoted more to bolstering nest eggs than increased spending.
The higher savings rate is healthy in the long term, economists said. But without vigorous consumer spending, the government may have to do more to revive the economy, possibly through further tax breaks and spending.
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We all knew he would raise taxes on the middle class...no liberal democrat in history has lowered taxes...none
It was all smoke and mirrors during the campaign pretending that he was cutting taxes for the middle class, when really it was tax increases that were planned, starting with hidden taxes like cap and trade....others to follow
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Yep .... we kept telling the idiots that these were all empty campaign promises but all they heard was "95% of Americans will not see their taxes increase." Morons.
You are missing the point. There is a sector of the population that feels it is their right to be "given" what they want or need whether it be health care, food, housing.... They feel no need to earn anything. And there is a sector of the population that encourages this behavior.
You're missing the point.
Health care costs are KILLING America's businesses - from GE, GM, and Ford, down to the mom and pop corner store at the end of your street.
Health care costs are UNSUSTAINABLE for America's businesses, so businesses are DROPPING health insurance benefits for their employees.
You act like people should "get out and earn their health care benefits", when MOST employers are NOT offering health care benefits to their newest employees, or filing bankruptcy and STOPPING even contractually obligated health care benefits.
You need to get out of your "all about me" bubble, turn off the Fox News, and take a look at the real world.
This ain't 1962 anymore genius, and Ward Cleaver's employer stopped providing for all of his family's needs.
Just amazing. After dedicating over 20 years of my life to service to this country you would have no problem making me give up the benefits I earned and still you would willingly pay for health care for those who make no effort in life and I am not talking about those who have been laid off, they will find other jobs eventually and I would have no problem with a temporary system for them but not the lazy and useless.
People have worked for DECADES at some businesses, paid their income, property, state, county, and local taxes EVERY TIME without ever ONCE missing a payment, and when they fall on hard times, or THEIR EMPLOYERS TURN AGAINST THEM, your attitude is "they can go F themselves, I've got mine, and that's all that matters". I've got bad news for you genius - MOST working people are LOSING their benefits. By 2012, it's estimated that only 35% - 40% of WORKING PEOPLE will still have their medical benefits. What are you going to do about the 60% of the population that won't have ANY medical benefits, when most of them can't afford insurance on their own?
How absurd that you act like I'm supposed to HONOR your "service" to this country, while you're telling the MAJORITY of Americans that they can go F themselves, WHILE THEY PAY YOUR WAY THROUGH LIFE! That takes an unprecedented about of gall. Your contempt for the people of this country, is appalling. There's no question you're a conservative. You've got yours, so F everyone else.
Well America is broke too, so maybe you should lose your benefits too, instead of relying on WORKING PEOPLE, such as myself, to support the socialization of your outrageously over generous medical benefits.
Just amazing. After dedicating over 20 years of my life to service to this country you would have no problem making me give up the benefits I earned and still you would willingly pay for health care for those who make no effort in life and I am not talking about those who have been laid off, they will find other jobs eventually and I would have no problem with a temporary system for them but not the lazy and useless.
Hungry you are missing their point and they make it so well. As long as it is them on the receiving end it is their "right". The rest of the country does not have those "rights" and when anyone tries to see that everyone is treated fairly those whose "rights" are being questioned go on the offensive. This is and has always been about and between the haves and have nots and how dare we try to help the have nots.
You are missing the point. There is a sector of the population that feels it is their right to be "given" what they want or need whether it be health care, food, housing.... They feel no need to earn anything. And there is a sector of the population that encourages this behavior.
Not ruling anything out? Obama did say he would not raise taxes on those making <$250k a year and now that is an option. Can't keep his word? or just made promises to get elected? Sounds a bit like Bush 1 "Read my lips...."
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We all knew he would raise taxes on the middle class...no liberal democrat in history has lowered taxes...none
It was all smoke and mirrors during the campaign pretending that he was cutting taxes for the middle class, when really it was tax increases that were planned, starting with hidden taxes like cap and trade....others to follow
Wish these Dumb Repugs will have a plan instead of just screaming NO. What Romney seems to be stating here is a return to the old Trickle-Down create jobs in the Private BS that could not prevent this mess we'd gotten in - At least give this current stimulus package a chance to work. Dumb Repugs !