Geithner says spending-cut bill threatens jobs

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Treasury Secretary Timothy Geithner addresses a news conference at the end of the G20 finance meeting in Paris February 19, 2011. REUTERS/Benoit Tessier

Treasury Secretary Timothy Geithner addresses a news conference at the end of the G20 finance meeting in Paris February 19, 2011.

Credit: Reuters/Benoit Tessier

PARIS | Sat Feb 19, 2011 1:53pm EST

PARIS (Reuters) - Republicans' bill to slash federal spending this year would hurt efforts to spur growth and create jobs, Treasury Secretary Timothy Geithner said on Saturday.

He was asked at a press conference following a Group of 20 meeting for his reaction to House approval of measures that will cut spending by about $61.5 billion from current levels in a move seen as a challenge to the Obama administration to show it is serious about reducing deficits.

The House action is expected to be stopped by Obama or Democrats in the Senate, but it points to a growing possibility of government shutdowns if a compromise is not worked out by March 4, when current funding expires.

"In our judgment, the continuing opposition...in the House would undermine and damage our capacity to create jobs and expand the economy," Geithner said.

The United States has faced international criticism for running huge budget deficits that it finances through borrowing from abroad. Geithner told the G20 the Obama administration's budget for 2012 will meet its G20 commitment to halve fiscal deficits by 2013 and stabilize debt-to-GDP ratios by 2016.

Republicans claim the Obama administration needs to show it is serious about cutting spending and are trying to force the issue in Congress.

Geithner said the country was at "the beginning of a very important national debate" on its finances but said the economy must first regain its health so that Americans can start to live within their means.

He suggested the economic recovery now under way from the 2007-2009 financial crisis still needs to be strengthened, after which it will be easier to tackle deficits.

"I am very confident that the Democrats and the Republicans will come together on a program to not just reduce spending but reduce long-term deficits," he said.

(Reporting by Glenn Somerville, editing by Patrick Graham)
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Comments (8)
awayneramsey wrote:
I don’t know how much Timothy Geithner earns, neither do I know what he means by ” … so that Americans can start to live within their means,” but after being down-sized about eleven years ago, I am living in extreme poverty similar to that experienced by refugees. I check into a homeless shelter after passing through security guards and metal detectors; all my personal belongings are examined and I am not boarding an airplane. I cannot remain in the shelter, even if I am sick, but must go out and stay out of the way of law enforcement, somehow find enough money to purchase shoes–homeless people walk a lot you see. It is worse in other parts of America.

Feb 19, 2011 6:22pm EST  --  Report as abuse
txgadfly wrote:
Why would any educated, intelligent American expect Republicans to care a whit about what happens to Americans? They do not care about jobs other than their own. They do not care about the unemployed, the poor, the elderly, the disabled, or children. They are hired thugs carrying out the will of their masters. And the Democrats are little different. They even have the same masters.

These people not only do not represent us, they lack the fundamental commonality with the people to share the same nationality.

Feb 20, 2011 12:43am EST  --  Report as abuse
valwayne wrote:
A treasury sec that has participated in the most massive corrupt spending spree in U.S. history, the piling up of more debt in a shorter amount of time than in all of human history, and a long term UNEMPLOYMENT rate that has exeeded everything outside of the great depression is now criticizing tiny cutbacks in Obama’s massive spending spree. Sec Geitner should be ashamed for what he has done to our nation, and his defense of Obama’s massive corrupt spending is sickening!

Feb 20, 2011 12:24pm EST  --  Report as abuse
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