" />
Sunday October 4th, 2015 11:24AM

In budget faceoff, Obama warns GOP of 'economic chaos'

By The Associated Press
Related Articles
WASHINGTON (AP) -- A potential federal shutdown looming, President Barack Obama on Monday warned congressional Republicans they could trigger national "economic chaos" if they demand a delay of his health care law as the price for supporting continued spending for federal operations.

House Republican leaders were to meet Tuesday in hopes of finding a formula that would avoid a shutdown on Oct. 1 without alienating party conservatives who insist on votes to undercut the Affordable Care Act. Even more daunting is a mid- to late-October deadline for raising the nation's borrowing limit, which some Republicans also want to use as leverage against the Obama administration.

"Are some of these folks really so beholden to one extreme wing of their party that they're willing to tank the entire economy just because they can't get their way on this issue?" Obama said in a speech at the White House. "Are they really willing to hurt people just to score political points?"

The Republicans don't see it that way.

House Speaker John Boehner, who opposes the threat of a shutdown, said, "It's a shame that the president could not manage to rise above partisanship today." Obama, said Boehner, "should be working in a bipartisan way to address America's spending problem, the way presidents of both parties have done before," and should delay implementation of the health care law.

While some conservatives supported by the tea party have been making shutdown threats, Sen. Rand Paul of Kentucky said Monday that was "a dumb idea." At a community meeting in Louisville, he said, "We should fight for what we believe in and then maybe we find something in between the two. ... I am for the debate, I am for fighting. I don't want to shut the government down, though. I think that's a bad solution."

Obama timed his remarks for the fifth anniversary of the bankruptcy of Wall Street giant Lehman Brothers, a major early event in the near-meltdown of the U.S. financial system and a severe global recession that preceded his presidency. He used the occasion to draw attention to the still-recovering economy and to what he called a "safer" financial system now in place.

He delayed his remarks as authorities responded to the shootings that officials said left at least 13 people dead at the Washington Navy Yard just a few miles from the White House.

While unemployment has dropped to 7.3 percent from a high of 10 percent and the housing market has begun to recover, the share of long-term unemployed workers is double what it was before the recession, and a homebuilding revival has yet to take hold. A new analysis conducted for The Associated Press shows that the gap in employment rates between America's highest- and lowest-income families has stretched to its widest level since officials began tracking the data a decade ago.

Obama conceded the problems. "As any middle class family will tell you or anybody who's striving to get in the middle class, we are not yet where we need to be," he said.

Still, his National Economic Council argued his case for progress, issuing a report detailing policies that it said had helped return the nation to a path toward growth. Those steps ranged from the unpopular Troubled Asset Relief Program, or TARP, that shored up the financial industry and bailed out auto giants General Motors and Chrysler, to an $800 billion stimulus bill and sweeping new bank regulations. Of the $245 billion that the government injected into the banking system, virtually all of it has been paid back, the report noted.

"After all the progress that we've made over these last four and a half years, the idea of reversing that progress because of an unwillingness to compromise or because of some ideological agenda is the height of irresponsibility," Obama said. He reiterated his stance that he will not negotiate over the debt ceiling. Failure to raise it could lead to the first national default in U.S. history.

Conservative Republicans, on the other hand, say the health care law, which has yet to take full effect, will place a burden on businesses and the public and will damage the economy. As a result, they insist that it be starved of taxpayer money or at least delayed.

Chances are fading for a complicated GOP leadership plan that would allow the House to also vote to "defund Obamacare" but automatically separate the measures when delivering them to the Senate to ease the way for quick passage of a "clean" funding measure for delivery to Obama.

The next steps aren't clear, but one option under consideration is to accede to conservatives' demands to deliver to the Democratic Senate a combined bill that pays for government and defunds the health care law. The Senate would be virtually certain to strip away the attack on the health care law and bounce the funding measure right back to the House.

That scenario might frustrate conservatives, with the funding measure probably gaining enough votes to win passage in the House and proceed to the White House for Obama's signature.

Stopgap spending bills are usually routine, so the difficult path for the current one hardly inspires confidence for an even more important measure to raise the government's borrowing cap. Republicans want to use the debt limit measure as a mechanism to win further spending cuts on top of those they forced upon Obama two years ago.

It's not clear how the debt limit conundrum will be solved, though a time-tested recipe would be to add mostly symbolic reforms like a "no budget, no pay" proposal that worked early this year when House leaders orchestrated a debt limit increase that was intended to last through July or so but is now likely to suffice until mid-late October. The idea was that lawmakers wouldn't get paid if the chamber in which they served didn't pass a budget. It was a House GOP jab aimed at the Senate, which hadn't passed a budget since 2009. This year it did but there's been no effort to reconcile it with a competing House measure.

Obama intends to continue pressuring Congress with daily events this week, including a speech Wednesday to the Business Roundtable, an association of CEOs from the top U.S. companies, and a trip Friday to Kansas City to visit a Ford plant, where he will promote the strength of the auto industry.
© Copyright 2015 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
S&P 500 index has its best year since 1997
The stock market closed out a record year with more all-time highs on Tuesday, giving U.S. indexes their biggest annual gains in almost two decades.
6:56PM ( 1 year ago )
Colorado readies for 'Green Wednesday' pot sales
Police were adding extra patrols around pot shops in eight Colorado towns that plan to allow recreational sales to anyone over 21 on Jan. 1.
1:52PM ( 1 year ago )
Kerry seeks framework for Mideast peace talks
A senior State Department official says Secretary of State John Kerry will try this week to get Israel and the Palestinians to agree on a framework for negotiating a final peace agreement, yet cautions against raising expectations for Kerry's latest round of shuttle diplomacy.
1:35PM ( 1 year ago )
U.S. News
Missing Ga. bank director arrested in Brunswick
A bank director accused of losing millions of investors' dollars before vanishing last year was arrested Tuesday during a traffic stop in a city in south Georgia.
7:00PM ( 1 year ago )
Amtrak to suspend some Crescent service in Jan., Feb.
Amtrak service will shut down in parts of the Southeast for several days in January and February for rail maintenance by Norfolk Southern Railway.
9:00AM ( 1 year ago )
Lung cancer scans urged for some smokers, not all
Certain current or former heavy smokers should start getting yearly scans for lung cancer to cut their risk of death from the nation's top cancer killer, government advisers said Monday - even as they stressed that the tests aren't for everyone.
7:26AM ( 1 year ago )
Business News
Sex offender held in Hall County for failing to register
A 47-year-old man was booked into the Hall County Jail Tuesday, being held without bond for allegedly failing to register as a sex offender, his second such arrest.
6:09PM ( 1 year ago )
Pharmacy robberies may involve same suspect
Oakwood Police Tuesday afternoon released details in a pharmacy robbery they're investigating, similar to one that happened in the Hall County Tuesday morning.
5:46PM ( 1 year ago )
Victim critical following apartment fire
A 41-year-old woman was in critical but stable condition Tuesday after being rescued from an apartment fire in Forsyth County late Monday afternoon.
3:16PM ( 1 year ago )
Local/State News
Feeling US snub, Saudis strengthen ties elsewhere
Increasingly vocal in its frustration over U.S. policies in the Mideast, Saudi Arabia is strengthening ties elsewhere, seeking out an alignment that will bolster its position after it was pushed to the sidelines this year.
4:34PM ( 1 year ago )
NSA reportedly intercepts computer deliveries
A German magazine has lifted the lid on the operations of the National Security Agency's hacker unit, revealing how American spies intercepted computer deliveries, exploited hardware vulnerabilities, and even hijacked Microsoft's bug report system to spy on their targets.
12:31PM ( 1 year ago )
Rockets fired from Lebanon into Israel
Rockets from Lebanon struck northern Israel on Sunday, causing no injuries but sparking an Israeli reprisal shelling in a rare flare-up between the two countries.
12:26PM ( 1 year ago )
UN is next stop for Obama after success with Iran, pope; top issues are IS, Syria, Russia
NEW YORK (AP) — Fresh from successes on Iran and with the pope, President Barack Obama still carried heavy burdens into critical meetings this week at the U.N. General Assembly.They include the threat...
3:31PM ( 6 days ago )
Stunning Congress, House Speaker Boehner announces plans to resign; tea party declares victory
WASHINGTON (AP) — Plunging Congress into deeper turmoil, House Speaker John Boehner abruptly announced his resignation Friday, shutting down a tea party drive to depose the nation's highest-ranking Re...
6:14PM ( 1 week ago )
Tornado heavily damages 10 homes but causes no injuries on island in South Carolina
JOHNS ISLAND, S.C. (AP) — A tornado quickly blew through a neighborhood on the South Carolina coast early Friday and blew out windows, knocked down trees and heavily damaged ten homes.The tornado touc...
5:08PM ( 1 week ago )
Caterpillar says it may cut more than 10,000 jobs by 2018, lowers 2015 revenue expectation
Caterpillar is planning another round of job cuts that could exceed 10,000 people through 2018, as the construction and mining equipment maker adjusts to downturns in key markets.That could amount to...
10:06AM ( 1 week ago )
Escaped tarantula grounds Atlanta-bound flight in Baltimore
An eight-legged creature that escaped in the cargo hold of a passenger flight from Baltimore-Washington International Airport to Atlanta's Hartsfield-Jackson International grounded the plane and sent passengers onto another flight.
By The Associated Press
9:06AM ( 1 week ago )