Washington: US President Barack Obama on Friday warned that sequester or automatic spending cuts that comes into effect from Friday would reduce America's growth rate by one-half of one percent and cost about 75,000 jobs. (Agencies)
"Economists are estimating that as a consequence of the sequester, we could see growth cut by over one-half of 1 percent. It will cost about 750,000 jobs at a time when we should be growing jobs more quickly," Obama told White House reporters during a news conference.
"So every time that we get a piece of economic news over the next month, next two months, next six months, as long as the sequesters in place, we'll know that that economic news could have been better if Congress had not failed to act," he said.
At the same time, the President said not everybody would feel the immediate impact of it. "Now what is absolutely true is that not everybody is going to feel it. Not everybody's going to feel it all at once," Obama said.
Taking a dig at the Republicans in the Congress, he said starting from Saturday, all the folks who are cleaning the floors at the Capital now that Congress has left, somebody's going to be vacuuming and cleaning those floors and throwing out the garbage.
"They're going to have less pay, the janitors, the security guards. They just got a pay cut, and they got to figure out how to manage that. That's real," he said.
"So I want to be very clear here. It is absolutely true that this is not going to precipitate the kind of crisis we talked about with America defaulting and some of the problems around the debt ceiling.
"I don't anticipate a huge financial crisis. But people are going to be hurt. The economy will not grow as quickly as it would have. Unemployment will not go down as quickly as it would have. And there are lives behind that. And that's real. And it's not necessary. That's the problem," Obama said.
"What I want to try to do is to make sure that we're constantly focused that our true north is on how are we helping American families succeed. Deficit reduction is part of that agenda, and an important part, but it's not the only part. And I don't want us to be paralyzed on everything just because we disagree on this one thing," he said in response to a question.
Washington: US President Barack Obama on Friday warned that sequester or automatic spending cuts that comes into effect from Friday would reduce America's growth rate by one-half of one percent and cost about 75,000 jobs.