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Mitt Romney Says Spending Cuts Hurt Economic Growth

The Huffington Post  |  By Posted: 02/21/12 07:17 PM ET  |  Updated: 03/02/12 12:28 PM ET

Mitt Romney Spending

Mitt Romney stepped on his message a bit Tuesday, and on attempts to draw attention to a forthcoming tax reform plan, by saying that spending cuts can damage the economy.

"If you just cut -- if all you're thinking about is just cutting spending -- why as you cut spending you'll slow down the economy, so you have to at the same time create pro-growth tax policies," Romney said during a town hall meeting in Michigan.

His comment drew attention from several news outlets and liberal blogs. MSNBC's "First Read" pointed out that Romney's remark represented "a rhetorical departure from the rest of the Republican Party, which has done battle with the Obama administration over the past year about the best course for economic growth."

"First Read" also quoted Andy Roth, vice president of the conservative Club for Growth, calling Romney's comment "hogwash."

"It confirms yet again that Romney is not a limited-government conservative," Roth said. "The idea that balancing the budget would not help the economy is crazy. If we balanced the budget tomorrow on spending cuts alone, it would be fantastic for the economy."

Romney spokesman Ryan Williams tried to clarify the remark in a statement:

"The governor’s point was that simply slashing the budget, with no affirmative pro-growth policies, is insufficient to get the economy turned around. However, he believes that budget cuts –- especially in the context of President Obama’s unprecedented spending explosion –- are a step in the right direction. As he made clear in his economic plan, he believes that spending cuts that reduce the size of government and balance the budget are crucial to economic growth and job creation."

House Republicans have dubbed themselves shepherds of the "Cut-and-Grow Congress," a phrase they've repeated to hammer home the argument that cutting spending will boost the economy. "Our Congress will be a cut-and-grow Congress. We believe we have to cut spending," House Majority Leader Eric Cantor (R-Va.) said. "When the president talks about competitiveness, sure, we want America to be competitive, but then when he talks about investing, I think even someone from the White House this week had said that this is going to be a cut and invest White House. We want to cut and grow. When we hear invest from anyone in Washington, to me that means more spending."

Rep. Kevin Brady (R-Texas), a member of House leadership, made the point succinctly in a statement headlined: "Cut spending to grow the economy."

"When I became vice chairman of the Joint Economic Committee, I asked my staff to study what our foreign competitors, who found themselves in fiscal trouble, did to right their situation. The findings were unambiguous: Successful countries cut government spending as a share of their economies," Brady said.

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Mitt Romney stepped on his message a bit Tuesday, and on attempts to draw attention to a forthcoming tax reform plan, by saying that spending cuts can damage the economy. "If you just cut -- if all...
Mitt Romney stepped on his message a bit Tuesday, and on attempts to draw attention to a forthcoming tax reform plan, by saying that spending cuts can damage the economy. "If you just cut -- if all...
 
 
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COMMUNITY PUNDITS

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murphthesurf3 10:10 PM on 02/21/2012
In the same Speech--- OBAMA IS RESPONSIBLE FOR HIGH GAS PRICES

but, but, but, but, but, but.....http://thinkprogress.org/progress-report/five-facts-about-gas-prices/
DO YOU THINK HE MIGHT BE WILLING TO TELL THE TRUTH ABOUT THIS  Read More...

IN ONE SENTENCE: Instead of giving billions more in handouts to Big Oil despite the industry’s record-breaking profits, President Obama has presided over a dramatic increase in domestic energy production coupled with unprecedented efforts to decrease Americans’ spending at the pump by modernizing fuel economy standards. TO BE SPECIFIC.

1. Domestic Energy Production Has Soared Under President Obama: The number of oil drilling rigs in the U.S. hit a record last week, having quadrupled in number over the past three years . Between oil and gas drilling rigs, the U.S. now has more rigs at work than the rest of the world combined. If we continue growing anywhere near thIS pace and keep squeezing demand out of the system, NO importing oil in 10 years.

2. President Obama Has Taken Huge Steps to Reduce Our Dependence on Oil: In addition to overseeing a dramatic increase in domestic energy production (including from renewable sources), the president has also taken steps to reduce the amount of oil we consume. Most notably, new modern standards requiring cars and light-duty trucks to achieve MUCH HIGHER average fuel economy, a one-third imrovement to fuel economy standards that had previously languished in neutral for more than 20 years. Even as gas prices are rising, Americans’ cars are becoming significantly more efficient.

3. Big Oil Made a Record $137 BILLION in Profits Last Year: Just the five largest oil companies — ExxonMobil, ConocoPhillips, BP, Chevron, and Shell — booked a combined profit of $137 BILLION in 2011, even though these companies produced 4 percent less oil in 2011. And of course Big Oil’s record profits are directly related to increasing pain at the pump for American consumers:

4. Republican Politicians Oppose Ending Taxpayer Handouts to Big Oil: Every Republican presidential contender and nearly every Republican member of the House and Senate has signed a pledge to oppose ending taxpayer handouts to Big Oil — more than $40 BILLION over the next ten years. In addition, 

5. Republican Politicians Want to Cut Big Oil’s Taxes Even More: Both the House Republican budget plan released last year (and supported by nearly every Republican member of the House and Senate) and the tax plans of every GOP presidential contender call for cutting the corporate tax rate by one-third or more. 
45 minutes ago (12:26 AM)
Cut spending to a Conservative means any program that benefits the non-rich.
07:20 PM on 03/27/2012
Mittens just doesn't want corporate welfare cut...
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HUFFPOST SUPER USER
Azetoth
07:15 AM on 02/23/2012
Actually, our competitors, especially China, have all increased gov spending, Texas liar.
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jmdziuban1
Heeey, Mr Spaceman.
12:01 AM on 02/23/2012
"Andy Roth, vice president of the conservative Club for Growth, calling Romney's comment "hogwash."

"It confirms yet again that Romney is not a limited-government conservative," Roth said. "The idea that balancing the budget would not help the economy is crazy. If we balanced the budget tomorrow on spending cuts alone, it would be fantastic for the economy.""

Actually, balancing the federal budget tomorrow through spending cuts alone would devastate the economy. Remember this whenever anybody tells you that the Club for Growth has any idea what they are talking about. They don't, they do however have many self-serving economic policies that they continually promote.
07:18 PM on 02/22/2012
George Soros himself stated that there was very little difference between Obama & Romney. Therefore I don't understand why there's such a fuss over his statement.
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05:41 PM on 02/22/2012
Could somebody - anybody - please give me an example of a nation that has grown its economy by cutting spending? I haven't able to find any.

Thanks.
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HUFFPOST SUPER USER
eenp718
Justice and Fairness is Key
07:06 PM on 02/22/2012
You're right. No economy anywhere can grow when you make cuts. They just don't won't the economy to grow after their years from 2000-2008 almost caused a depression. If the economy grows, people have jobs, who would ever vote republican again. Good post. Ed
schlinky
someone still cares
09:18 AM on 02/24/2012
The only instances where this could work, is when a Country is Economicly at rock bottom, at that stage the only way is up anyway,and it will be a long way. For the U S this would be devastating, and set the Country back for hundreds of yrs.Anyone loking for Doomesday here are the dirctions,of how to get there.
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Deep Thinking Man
Always Remember, A Wet Bird Never Flies At Night !
05:09 PM on 02/22/2012
on the main page...it sounded as though Mittens had a visectomy !!!!!!
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04:51 PM on 02/22/2012
Oooh! A snippett of truth leaked through when he wasn't thinking!

I don't understand how these talking heads can say that Romney's not a real conservative. (Is that like Franklin Graham intimating that Obama's not a real Christian?) Conservatives have raised taxes and increased spending plenty of times.
mijjy
Read, Be Aware, Prepare
04:39 PM on 02/22/2012
flip flop flip flop flip flop goes the floundering fish grounded on dry land - come to the Grand Ole Fish Fry in November....
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HUFFPOST SUPER USER
Karel Appel
04:34 PM on 02/22/2012
The Greek couldn't agree more. Cut spending, then cut spending, and then cut spending some more. And Hoppa! economy saved.
04:26 PM on 02/22/2012
I LOVE how we are all supposed to believe that Romney is some brilliant businessman. He inherited millions from his father, the former governor of Mi. Do not be fooled by his lie that he gave everything away he received at his fathers death. He got most of the money BEFORE, while his father was still alive. If he had just put the money in a nice interest earning account decades ago he would be worth almost the same.

Additionally he had the connections that come with being the son of a Governor, and one of the most important members of the Mormon chuch and all the business benefits that brings...

"Marion George Romney (September 19, 1897 – May 20, 1988) was an apostle and a member of the First Presidency of The Church of Jesus Christ of Latter-day Saints (LDS Church)."

and lets not for get his cousin...

Henry B. Eyring is the First Counselor in the First Presidency of The Church of Jesus Christ of Latter-day Saints. Harden B. Eyring, is a higher education administrator for the State of Utah.

and lets not forget another of his relative's husbands here...

Spencer Woolley Kimball (March 28, 1895 – November 5, 1985) the twelfth president of The Church of Jesus Christ of Latter-day Saints from 1973 until his death in 1985.

Not to mention his direct decent from Parley P. Pratt. Brgham Young's close associate.

Yeah, I'm sure THOSE ties didn't help...
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Cunningham
I intend to live forever, or die trying. GrouchoM
07:04 PM on 02/22/2012
Huntsman is a direct descendant of Pratt, also.
07:20 PM on 02/22/2012
Based upon what I've uncovered.....what you say is correct. Romney grew up in a family not lacking.
04:17 PM on 02/22/2012
The Det News endorsed Flip. That newspaper is always good to line my kitty litter.
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Cunningham
I intend to live forever, or die trying. GrouchoM
07:10 PM on 02/22/2012
Has the Detroit Free Press endorsed President Obama yet?

Obama/Biden 2012!
07:18 PM on 02/22/2012
No, not yet since 2008.
07:20 PM on 02/22/2012
I don't know......but if they haven't.....they will.
03:48 PM on 02/22/2012
It should come as no surprise that Romney would agree with Obama. Obama, Romney, Gingrich, and Santorum are all in the right-authoritarian quadrant of political beliefs. Most Americans are not there, so I expect a strong showing for Gary Johnson (a left-libertarian) in November, unless somehow Paul (a right-libertarian) gets the nomination or the Libertarian Party loses their minds and nominates someone no one has ever heard of.
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Cunningham
I intend to live forever, or die trying. GrouchoM
07:11 PM on 02/22/2012
President Obama thinks that INCREASED REVENUE is also needed. The GOP candidates don't.
serena1313
Condemnation w/o investigation is hgt of ignorance
03:26 PM on 02/22/2012
Romney is correct in saying spending cuts will slow down economic growth, however, it is not only at odds with his Party but diametrically opposite to the economic proposals he's touted on the campaign trail:

"Runaway federal spending crowds out private investment. [...] We must cut government spending."

"We must cut federal spending to free up resources for productive investment."

"Under my administration, we will level with the American people about what it will take to truly cut spending."

"As president, I pledge to reduce spending."

"Upon taking office, I will immediately cut discretionary spending."

Either Romney decided to change course or he saw the polls & decided to deceive the voters. Unless there is another explanation, I would suggest the latter -- after all, it is his modus operandi.
03:14 PM on 02/22/2012
President Obama been saying you can't cut your way to economic growth. Romney is just coming from te.aba.gg.erville, but it's too late flip.