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.”
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.
Avoid fiscal tightening when growth is weak.
Themes
Mood
Type
When to use this quote
- government budgeting
- business planning
- personal finance
- public sector management
Key Concepts
Questions to Reflect On
- How can targeted stimulus offset spending cuts?
- What safeguards protect vulnerable groups?
If cuts are too deep, essential services suffer.