Mitt Romney believes that spending cuts will cause a recession. Will the Tea Party still support him?
Republican House Speaker John Boehner and GOP Presidential
nominee Mitt Romney have, in the course of the past week, pushed starkly
different approaches to fiscal policy and economic recovery, a window
into a broader rift within the GOP between the Tea Party and less
Boehner, carrying the Tea Party line on spending, recently said that
he would insist that the deficit be cut by a dollar for every dollar
increase in the debt limit, or else he would refuse to raise it, helping
drive the country toward default.
"When the time comes, I will again insist on my simple principle of
cuts and reforms greater than the debt limit increase," Boehner said.
"Dealing with our deficit and our debt would help create more economic growth in the United States," Boehner told George Stephanopolous Sunday on ABC's "This Week." "The issue is the debt."
Romney, however, said that pushing drastic spending cuts during shaky
economic times is a prescription for "recession or depression."
Asked by Time's Mark Halperin
Wednesday why he wouldn't push major cuts in his first year, Romney
responded with reasoning that would be largely uncontroversial if not
for the past two years' mainstreaming of an economic philosophy that
insists government spending actually costs jobs, rather than creates
"Well because, if you take a trillion dollars for instance, out of
the first year of the federal budget, that would shrink GDP over 5
percent. That is by definition throwing us into recession or depression.
So I'm not going to do that, of course,"
See Votes by State
News & Politics