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Approach Quote by Barack Obama

“Sometimes if your only approach is cutting spending at a time when the economy's contracting, then the economy will contract further.” quote by Barack Obama
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“Sometimes if your only approach is cutting spending at a time when the economy's contracting, then the economy will contract further.”

Barack Obama

About This Quote

Source Speech: Economic Policy Remarks, 2011

Cutting spending during a downturn can deepen recession because demand falls further.

In simple terms: Spending cuts in a recession worsen the economy.

Key Takeaway

Avoid fiscal tightening when growth is weak.

Themes

economics fiscal policy recession

Mood

cautious analytical

Type

policy economic

When to use this quote

  • government budgeting
  • business planning
  • personal finance
  • public sector management

Key Concepts

Keynesian multiplier budget deficits policy timing

Questions to Reflect On

  • How can targeted stimulus offset spending cuts?
  • What safeguards protect vulnerable groups?
A Different Perspective

If cuts are too deep, essential services suffer.

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