Obama Accuses GOP of Threatening Recession in Budget Battle

The president calls on Republicans to eliminate threat of default by agreeing to raise the debt ceiling.
14:24 | 10/08/13

Coming up in the next {{countdown}} {{countdownlbl}}

Coming up next:

{{nextVideo.title}}

{{nextVideo.description}}

Skip to this video now

Now Playing:

{{currentVideo.title}}

More information on this video
Enhanced full screen
Explore related content
Comments
Related Extras
Related Videos
Video Transcript
Transcript for Obama Accuses GOP of Threatening Recession in Budget Battle
This morning -- -- to speak with speaker Boehner and I told them what I've been saying publicly that I am happy. To talk with him and other Republicans about anything. -- decisions I think are important but also issues that they think are important. I also told -- that having such a conversation. Talks negotiations. Shouldn't require -- in the threats of a government shutdown or economic chaos. Over the heads the American people. Think about it this way the American people do not. Get to demand a ransom for doing their jobs. You don't get a chance to call your bank and say I'm I don't pay my mortgage this month unless you throw your car and Xbox. If you're in negotiations around. Find somebody's house you don't get to say. Well let's talk about. The price on Medicaid and and if you don't give me -- -- them to burn down your house. That's not how negotiations work that's not -- -- happens in. Business it's not happens and private life. In the same way members -- congress and the house Republicans in particular don't get to demand ransom in exchange for doing their jobs. And two -- their very basic jobs are passing a budget. And making sure that America is paying its bills. They don't also get to say. You know unless you give me what the voters rejected in the last election. I'm gonna cause a recession. That's not how it works. No American president would deal with a foreign leader like this. Most of you would not deal -- Either coworkers or business associates. In this fashion and we shouldn't be doing this way here in Washington. And you know I've heard Republicans suggest that well no this is reasonable businesses. Entirely appropriate but as I've said before. Imagine if a democratic congress. Threaten to crash the global economy -- -- a Republican president agreed to -- gun background checks or. Immigration. And it's fair to say that Republicans would not think that was appropriate. So. Let's lift these threats from our families and our businesses. And let's get down to work. It's not like this is a new position and I'm taking here. I had speaker Boehner and the other leaders in just last week. Either my chief of staff or I have had serious conversations on the budget -- Republicans. More than twenty times since March. So we've been talking all kinds of business. What we haven't been able to get our. Serious positions from the Republicans that would allow us actually resolved some core differences. And they have decided to run out the clock until there's a government shutdown. For the possibility fault. Thinking that would give them more leverage that's not -- Characterization. They've set it themselves that was their strategy from the start. And that is not how our government is supposed to. It's not us me by the way who. Has taken a position that woman. Have conversations about -- senate Democrats. Have asked to sit down -- house Republicans and hash out a budget. But have been rejected by the house Republicans nineteen times. At the beginning of this year speaker mayors what we want is regular order and -- serious budget process. So senate should pass. A bill and how should pass a bill. Then a committee comes together to make hash other differences -- send the bill to the president well that's exactly what Democrats did. Except somewhere along the way. House Republicans decided they wouldn't appoint people to -- -- to try to negotiate. -- -- -- -- -- -- -- So. Even after all that. The Democrats in the senate still passed a budget would have effectively reflects. Republican priorities. At Republican budget levels just to keep the government open. And the house Republicans couldn't do that either. The point is I think not only the White House but also. Democrats in the senate and Democrats in the house have -- war. Man ample willingness to talk about any issues with the Republicans are concerned. But we can't do it. If the entire basis of the Republican strategy is we're gonna shut down the government. Or -- economic chaos if we don't get a 100% what we want. So my suggestion to the speaker has been and will continue to be what's -- excuse us. Let's take a vote in the house. -- and the -- right now let's put people back to work. There -- enough reasonable Republicans and Democrats in the house who were willing. To vote yes on a budget that the senate has already passed. Several could take place today. Shut down -- -- -- Then serious negotiations could proceed. Around every item in the but. As soon as congress votes to reopen the government. It's also got to vote to meet our country's commitments they are bills. Raise the debt ceiling. Because as reckless as a government shutdown is the economic shutdown caused by America defaulting. Would be dramatically worse and I want to talk about this for a minute because. Even though people can see and feel the effects of -- government shutdown. There are -- experiencing right now there still some people out there who don't believe that. Default as the real thing and we've been hearing that from some Republicans in congress that default would not be a big deal. So let me explain this if congress refuses to raise what's called the Betsy. America would not be able to meet all of our financial obligations for the first time in 225. Years. And because it's -- raising the debt ceiling I think a lot of Americans think. It's raising our -- it is not raising our debt. This does not add a dime to -- -- it simply says you pay. For what congress has offered already authorized. American purchase. Whether that's. The greatest military in the world war veterans benefits or Social Security. Whatever is the congress already authorized. What this does -- make sure that we can pay. Those bills. The last time that the Tea Party. Republicans flirted. With the idea of default two years ago. Markets plunged. Business and consumer confidence plunged. America's credit rating was downgraded for the first time. Any decision to actually go through with it. To actually permit default according to many CEOs and economists would be and I'm quoting here insane. Catastrophic. Chaos. Either some of the more polite words Warren Buffett likened to fall to a nuclear bomb. A weapon too horrible to use. It would disrupt markets it would undermine the world's confidence in America as the bedrock. Of the global economy. And it might permanently. Increase our borrowing costs. Which of course ironically would mean that it would be more expensive for us to service what that we do have -- it would add toward deficits and our debt not decrease. There's nothing fiscally responsible about that. Preventing this should be simple as -- said raising the debt ceiling has allowed the name which is why. Members of congress in both parties don't like to vote -- -- makes you vulnerable in political campaigns but it does not increase our debt. It does not -- deficits it does not allow for a single dime of increase spending all it does is allow. The Treasury Department. To pay for what congress has already spent. But as I said it's always -- people don't like dormant. Although it has been on 45 times since Ronald Reagan took office. Nobody in the past -- ever seriously threatened to breach the debt ceiling. Until the last two years. And this is the credit credit worthiness of the United States -- we're talking about this is our work this is our good name this is real. -- a government -- millions of Americans face -- convenience or -- -- hardship in an economic shut down. Every American could see their 401 -- and home values fall. Borrowing cost for mortgages and student loans rise. And there would be a significant risks risk. Of a very deep recession. At a time when we're still climbing our way out of the worst recession in our lifetimes. You know the American people verdict fought -- -- too long. To come back from one crisis. -- -- -- A handful of more extreme Republicans in the House of Representatives. -- -- The good news is over the past three and a half years our businesses created seven and a half million new jobs. Our housing markets healing we cut the deficit in half since I took office. The deficit is coming down faster than any time in the last fifty years. America's poised to become the number one energy producer in the world this year. This year for the first found a very long time were producing. More oil -- more important. So we got a lot of good things -- forests but the uncertainty caused by just one week. Of this nonsense so far has caused businesses to reconsider spending and hiring. We've -- consumer confidence plunged of the lowest level since 2008. We've seen mortgages held up by thousands of thousands of home buyers weren't sure about the economic situation out there. And all this that's toward deficits of dozens of track from. So we can't afford these manufactured crises every few months. And as I said this -- isn't even about. Deficits are spending their budgets are deficits are falling at the fastest pace in sixteen years. The budget that the senate passed is at Republican spending levels. If their budget. The Democrats want to put votes on just to make sure the government was open while negotiations took place for a longer term but. And what's happened to you the way we got to this point was. One thing and one thing only and that was Republican obsession with this -- -- -- affordable character and denying. Health care. To millions of people. That long. Ironically is. Moving forward. So. Most Americans. Democrats and Republicans agree that health care. Should not have anything to do with keeping our government open or paying her bills on time. Which is why I will sit down and work with anyone of any party. Not only to talk about the budget all talk about ways to improve the health care system. I'll talk about ways that we can shrink our long term deficits. Also want to talk about how we're gonna. Help the middle class strengthened early childhood education and improve our infrastructure and research and development for all want to things I want to talk about. In terms of how we're gonna make sure that everybody's getting a fair shake in this society and our economy is growing at a broad based way in building our middle class. And by the way if anybody -- my sincerity about that I've put forward. Proposals in my budget to reform entitlement programs for the long haul. And reform our tax quote in a way that would close loopholes for the wealthiest and lower wage rates for corporations. And help us invest in new jobs and reduce our deficits in some of these were originally Republican proposals. Because I don't believe any party has a monopoly on good ideas. So I assure myself willing to go more than half court. In these conversations. And reasonable Republicans want to talk about these things again I'm ready to head up to the hill and truck. I'll even spring for -- But I'm not gonna do it until. To be more extreme. Parts of the Republican Party. Stop forcing John Boehner to issue threats. About. Our economy. We can't make extortion routine is part of our democracy. Democracy doesn't function this way. And this is not just for me it's also from my successors in office whatever party they're from -- have to pay a ransom either for congress doing. It's basic job. Got put stop to Westport -- -- already this week I had to miss critical meetings and Asia. For more American jobs and businesses. And although. -- -- we get this -- that's not long term damage. Whatever we do these things. It. Hurts our credibility around the world and it makes it look like we don't have our act together. That's not something we should well. The greatest nation on earth shouldn't have to get permission from a -- were responsible members of congress every couple months just to keep our government open. Or to prevent. An economic catastrophe. So let's pass a budget what's in this government shut down. Let's pay our bills let's avert an economic shut down. Let's -- the gimmicks put aside what's good for any particular party and let's focus on what's good for the American people because they know we've got a lot of work to do.

This transcript has been automatically generated and may not be 100% accurate.

{"id":20508162,"title":"Obama Accuses GOP of Threatening Recession in Budget Battle","duration":"14:24","description":"The president calls on Republicans to eliminate threat of default by agreeing to raise the debt ceiling.","section":"Politics","mediaType":"Default"}