Bad decisions can hamper US economic growth: Obama
Updated: 2013-02-03 02:22
WASHINGTON - The United States is poised for economic growth and job creation this year, but partisan wrangling and bad decisions of US policymakers could hamper robust economic recovery, US President Barack Obama said on Saturday.
"2013 can be a year of solid growth, more jobs and higher wages. But that will only happen if we put a stop to self-inflicted wounds in Washington," Obama said in his weekly address.
The nation's latest gross domestic product (GDP) report was an reminder that bad decisions in Washington could get in the way of US economic progress, he stressed.
US real GDP unexpectedly declined 0.1 percent in the fourth quarter of 2012, the first time that the world's largest economy shrank since the second quarter of 2009. However, the unexpected quarterly economic dip represented a political olive branch to officials at the White House who advocated more fiscal stimulus steps to bolster the anemic economic recovery.
"We all agree that it's critical to cut unnecessary spending. But we can't just cut our way to prosperity. It hasn't worked in the past, and it won't work today. It could slow down our recovery. It could weaken our economy," Obama said.
The United States needs a balanced fiscal policy, an approach that cuts unnecessary spending and make critical investments in education, infrastructure, research and development, Obama noted.