ECONOMICS

Obama: Deficit Threatens Recovery

Tight spending key to long-term growth.

President Obama warned Saturday that a $1.4 trillion deficit needed to be addressed to keep the economy competitive. "As we work to create jobs, it is critical that we rein in the budget deficits we've been accumulating for far too long—deficits that won't just burden our children and grandchildren, but could damage our markets, drive up our interest rates, and jeopardize our recovery right now," he said in his weekly radio address. Obama also mentioned data released Friday that showed a robust 5.7 percent growth in the American economy in the fourth quarter of last year, saying it was a sign his stimulus plan was succeeding. "But when so many people are still struggling—when one in 10 Americans still can't find work, and millions more are working harder and longer for less—our mission isn't just to grow the economy," he said, adding that he hoped new tax credits could spur job growth.