News / USA

President Says Spending Cuts Hurting US Economy

President Barack Obama addressing press conference, Brady Press Briefing Room of the White House, Washington,April 30, 2013.President Barack Obama addressing press conference, Brady Press Briefing Room of the White House, Washington,April 30, 2013.
x
President Barack Obama addressing press conference, Brady Press Briefing Room of the White House, Washington,April 30, 2013.
President Barack Obama addressing press conference, Brady Press Briefing Room of the White House, Washington,April 30, 2013.
VOA News
U.S. President Barack Obama says the government spending cuts that took effect in March are hurting the American economy.
 
"It's slowed our growth," Obama said at a White House news conference Tuesday. "It's thrown people out of work."
 
The spending cuts came as Obama and Republican opponents in Congress failed to agree on plans for taxes and spending. The impasse meant automatic cuts for government programs and furloughs of some government workers. About 1,500 air traffic controllers were laid off each day last week until Congress reversed the action as flight delays mounted.
 
As he has in the past, the president called on Congress to reach an agreement that could cut the country's burgeoning national debt, while investing in programs to fix the nation's infrastructure and promote education and research. But the White House and Republicans differ sharply over what financial policies the government should adopt.
 
Earlier in the day, new reports showed the U.S. economy — the world's largest — is improving on some fronts. U.S. home prices rose the most in seven years in February, gaining more than 9 percent in the previous 12 months. Economists say the data from Case-Shiller is probably evidence that the housing market is strengthening. A separate report showing a decline in foreclosures also points to an improving housing market.
 
CoreLogic data shows foreclosures in March were down nearly 16 percent from the same month a year earlier.
 
The improving housing market, and generally rising stock market prices, may be the reason that U.S. consumer confidence moved sharply higher in April. Economists track consumer confidence for clues about the consumer spending that drives most U.S. economic activity. The owners of new, small businesses also report increasing confidence. A Kauffman Foundation study shows most people running start-up businesses think profitability will improve over the next year.

But the U.S. economy is still plagued by high unemployment, which is expected to stay at 7.6 percent this month. A report from Accenture says four out of 10 recent college graduates say they are underemployed, taking jobs that do not require the degrees they earned and paid for.
 
This and other data are likely part of the discussion Tuesday and Wednesday as top officials of the U.S. central bank meet to assess the economy and decide how much they will try to stimulate it with low interest rates and other policies.

You May Like

Turkey's Controversial Reform Bill Giving Investors Jitters

Homeland security reform bill will give police new powers in search, seizure, detention and arrests, while restricting the rights of suspects, their attorneys More

Audio Slideshow In Kenyan Prison, Good Grades Are Path to Freedom

Some inmates who get high marks could see their sentences commuted to non-custodial status More

'Rumble in the Jungle' Turns 40

'The Champ' knocked Foreman out to regain crown he had lost 7 years earlier when US government accused him of draft-dodging and boxing officials revoked his license More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Victorious Secularists Face Challenge to Form Government in Tunisiai
X
Henry Ridgwell
October 30, 2014 11:39 PM
Official results from Tunisia show the Islamist Ennahda party has failed to win the second free election since the so-called "Arab Spring" uprising in 2011. Ennahda, which handed power to a government of technocrats pending the elections, lost out to the secular party Nidaa Tounes. Henry Ridgwell reports from London that the relatively peaceful poll offers some hope in a volatile region.
Video

Video Victorious Secularists Face Challenge to Form Government in Tunisia

Official results from Tunisia show the Islamist Ennahda party has failed to win the second free election since the so-called "Arab Spring" uprising in 2011. Ennahda, which handed power to a government of technocrats pending the elections, lost out to the secular party Nidaa Tounes. Henry Ridgwell reports from London that the relatively peaceful poll offers some hope in a volatile region.
Video

Video Africa Tells its Story Through Fashion

In Africa, Fashion Week is a riot of colors, shapes, patterns and fabrics - against the backdrop of its ongoing struggle between nature and its fast-growing urban edge. How do these ideas translate into needle and thread? VOA’s Anita Powell visited this year’s Mercedes Benz Fashion Week Africa in Johannesburg to find out.
Video

Video Smugglers Offer Cheap Passage From Turkey to Syria

Smugglers in Turkey offer a relatively cheap passage across the border into Syria. Ankara has stepped up efforts to stem the flow of foreign fighters who want to join Islamic State militants fighting for control of the Syrian border city of Kobani. But porous borders and border guards who can be bribed make illegal border crossings quite easy. Zlatica Hoke has more.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video Kobani Refugees Welcome, Turkey Criticizes, US Airdrop

Residents of Kobani in northern Syria have welcomed the airdrop of weapons, ammunition and medicine to Kurdish militia who are resisting the seizure of their city by Islamic State militants. The Turkish government, however, has criticized the operation. VOA’s Scott Bobb reports from southeastern Turkey, across the border from Kobani.

All About America

AppleAndroid