'Super Committee' fails to reach a debt deal
November 21st, 2011
07:09 PM ET

'Super Committee' fails to reach a debt deal

WASHINGTON (CNN) - President Barack Obama and congressional leaders traded blame Monday for the failure of the congressional "super committee" to forge a deficit reduction deal, but they also called for Congress to work out an agreement before painful automatic budget cuts take place in 2013.

Earlier, the co-chairs of the bipartisan special joint committee said in a statement that "after months of hard work and intense deliberations, we have come to the conclusion today that it will not be possible to make any bipartisan agreement available to the public before the committee's deadline."

Markets dropped as news spread of the panel's expected failure. The Dow Jones Industrial Average fell 248 points Monday, with a minor recovery after being down more than 300 points earlier in the afternoon.

Initial reaction had Democrats and Republicans blaming each other for the inability of the bipartisan committee to negotiate at least $1.2 trillion in deficit reduction measures.

Obama said Republicans in Congress rejected what he called a balanced approach to deficit reduction that included tax increases on the wealthy.

"Despite the broad agreement that exists for such an approach, there are still to many Republicans in Congress that have refused to listen to the voices of reason and compromise that are coming from outside of Washington," Obama told reporters after the super committee announced its failure.

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soundoff (35 Responses)
  1. Kirk

    I'm tired of hearing all this dedt crap! It's just political spin for the Republicans! Socal Security and medicare are not entitlements! We pay into those programs and I for one want my money! So what happens when we make all these government cuts? What happens to the programs and people who need those programs after they are cut? We will be left with a rich and poor society and the poor will have no where to go! We need to focus on jobs for the middle class and all this deficit spending will not do anything for creating jobs! Our country is failing and the only way to save it is either a depression (which all of these cuts will help create) or a world war. It's funny how for over 200 years no one complained about our gonvernment but all of a sudden it's broken? Come on people wake up and quit listening to the media and politcal spin!

    November 21, 2011 at 7:40 pm |
    • jean2009

      @ Kirk I agree.
      George W Bush asked for and passed (in the form of calling them tax relief) several stimulus packages.
      Economic Growth and Tax Relief Package of 2001
      Job Creation and Worker Assistance Act of 2002
      Jobs Growth Tax Relief Reconciliation Act of 2003

      IN 2003, 450 economist issued a statement opposing his policies, which stated it would worsen the long term budget outlook and the ability of the government to meet its obligations.

      In January of 2004 he passed a Stimulus Package for $170 Billion dollars
      In February of 2008, a $787 Billion dollar Stimulus Package which included a $100 Billion tax rebate.
      Plus he took on 2 wars at the cost of billions...one of which was absolutely unnecessary...there were no WMD. Failed at responding to Katrina in a timely fashion (his normal, why waste money on infrastructure attitude.)
      And now, the Greedy Old PIgs have the gall to complain we don't have money for SS, Medicare, decent health care coverage for all Americans...if GWB had any brains he would have not raided the treasury and paid down the National Debt with the money the taxpayer had already sent. Absolute Fools!

      Suggested reading: http://www.nationofchange.org -Rich People And Corporations:The GOP Failed Trillion-Dollar Failed Stimulus. 9-2011 or Media Matters: Bush Tax Cuts A Decade of Failure -June 7, 2011.

      November 22, 2011 at 1:24 pm |
    • Howard

      You incredibly stupid dumbocrat trolls are either clueless, or part of the corrupt obama political machine ... either way, the result is that you are flushing our country down the crapper. You fools are as big of a threat to America as any foreign enemy has ever been. It's past time for REAL Americans to fight back, starting with the removal of the TRAITOR, barack obama !!!

      November 22, 2011 at 1:33 pm |
  2. 77hokie

    Eric Cantor and his cronies are wrecking America. Our country has always compromised over difficult issues until this Congress and the leaderless Executive Branch came together (or apart) in 2008.

    November 21, 2011 at 7:43 pm |
    • dcarter

      Eric Cantor, I wish I can go back into time and take my vote back. I will never vote for you (Erick Cantor) again. You lost (5) votes from my family.

      November 22, 2011 at 1:33 pm |
  3. Roger Kaputnik

    With Americans getting more and more depressed, President Obama today created the Department of Ubiquitous hope. DUH! http://www.spnheadlines.com/2010/05/obama-announces-department-of.html

    November 21, 2011 at 7:46 pm |
  4. Yvonne

    FIRE THE BUMS!!! IF ANYONE IN THE PRIVATE SECTOR FAILED AS MISERABLY THEY WOULD GET FIRED!!!

    November 21, 2011 at 8:12 pm |
  5. Peter

    Gergen and Fleischer are wrong.let's look back, President. Obama negotiated earlier in the year during the debt debate and had to capitulate; republicans held social benefits hostage for their extension of Bush tax cuts before raising the debt ceiling. Second, there were three different approaches to this already modeled and the committee had only to pick one and work out the details. We have three branches to our gov't and each has their elected and constitutional responsibilities. The President was doing his, judicial was doing theirs and the legislative branch failed to do theirs. To suggest that because 3 past Presidents had been in on their negotiations that, that is how it should be done is wrong. Are we to continue to believe every time a republican and or their surrogates suggest something to be the case it is gospel. We've had enough of that.

    November 21, 2011 at 8:44 pm |
  6. Brenda

    GROVER NORQUIST, he runs the show, the republicans sign a pledge to the high and mighty Little Gover and his puppets all fall in line to destroy this country. The republican party is a joke. Wait till 2012 you'll pay then.

    November 21, 2011 at 9:53 pm |
  7. USNavysquid

    People will not act as longer as they believe they can escape the consequences of not acting by blaming the other party.

    November 21, 2011 at 11:25 pm |
  8. Jeff E

    Shocker, congress failed to do it's job again. Probably busy reaffirming the 2nd amendment as the 2nd amendment. LOL..
    A few weeks ago they reaffirmed "in God we trust" again, didn't know there was a bill on the table to remove it, but hey, if you're a Republican, and you literally have nothing else to do at all, might as well play games and appeal to your base.

    November 22, 2011 at 2:41 am |
  9. sara

    NO NEW TAXES said GROVER....and the puppets put our entire country in peril. Stock markets riling, the little gains made with employment out the window...isn't this what the Teapublicans wanted all along. Thank you Dems for NOT stripping our SS and medicare. This is the only agenda of these people is to Privitize SS and slam the sick and poor in this country. Thank you for STANDING your Ground.

    November 22, 2011 at 5:37 am |
    • John

      You really think this governmnet does not have enough money? When has anyone spent more money to cut spending? This administration has tried to change the argument and say the American people want to tax and spend more. This is not the case.

      November 22, 2011 at 7:08 am |
    • Jay

      "the only agenda of these people is to Privitize [sic] SS and slam the sick and poor in this country."

      How does social security privatization "slam the sick and the poor?"

      Under the SS system today, most people get about a 2% rate of return on their "investment." That's woefully weak, given that you can take any 30 year period for the Dow and exceed it in just a simple stock index fund.

      Ask yourself, Sara, without the forced participation in Social Security, if you were offered two altrenatives –
      1) Invest in a guaranteed investment where you would only make 2% over 40 years of working, or
      2) Take an extremely small risk, where the traditional rate of return would be 7%, or accept higher risk options where your rates could increase dramatically, or mix them all.

      We already have such plans today, with 401(k)'s and IRA's that essentially already allow you to do this. All the GOP and reformers are asking is that some portion of that 15% SS tax be given back to the people who earned the money to invest as they wish. Most plans don't even contemplate the entire 15% being privatized, but a small portion of it. It's really mind boggling that some middle ground can't be reached, but when we have entire generations of people who view social security as sacrosanct and the only thing keeping grandma from eating dog food, well, you can see there's no hope of compromise with that kind of thinking.

      If you're going to waste your time with a reply that forever lives on the Internet, please make it cogent.

      November 22, 2011 at 9:32 am |
      • Trace

        Jay,

        U R an Idiot. Could anyone of us imagine what would have happened to the elderly if we had privitized (SIC) SS or medicare during Bush's 2nd term. The market went to 6700k when he left office.

        Are you really that innane and ignorant or are you just hoping no one remembers?

        November 22, 2011 at 9:39 am |
      • Jay

        Trace,

        Thanks for identifying me correctly as an inane, ignorant, idiot. A trifecta of alliteration.

        NO ONE is suggesting that the elderly take all the money they have "invested" in social security and place it in the stock market, then withdraw it within 5 years. Now, THAT would be a stupid proposal.

        Pretty much every plan for SS privatization merely allows for taking some percentage of the 12.4% that you pay into SS today and instead invest it in a private account, with the remainder staying in traditional SS. The plans also only allow for people at a certain age to be eligible for this. Most are for those 40-45 and younger, with 20+ years left in the workforce, therefore, they would not be negatively impacted by the wild swings from 2008-2012, but would have 20+ years.

        But. speaking of that, even if you invested in the market in 2008, just before the drop, you would nearly have recovered all your losses by now (in just 3 years) and because you would have been constantly purchasing stock, you would have been able to take advantage of depressed stock prices during those 4 years (google "dollar cost averaging"). Just ask anyone with a 401k who weathered the storm, they have managed to stay ahead of the game and are doing quite well.

        I know change is hard, but weren't we promised it in 2008?

        November 22, 2011 at 12:12 pm |
      • jean2009

        Well if it had been invested in Wall Street they would probably have got zip. Dumbo!

        November 22, 2011 at 1:26 pm |
      • Jay

        "Well if it had been invested in Wall Street they would probably have got zip. Dumbo!"

        Probably? Jean, this is a math problem, there's no "probably."

        With the exception of the crash of 1929, when it took nearly 25 years for the Dow to recover to it's 1929 peak, there is no 20 year period where the Dow did not grow significantly. Pretty much the only 20 year period you could have lost money in the Dow would have been if you had gotten in during the 28-29 run up. Of course, we know what followed that. Even now, in the period that all the Left tried to make out to be Bush's depression, the Dow has largely regained the ground lost since April 2008 (in 2.5 years) and I don't think anyone doubts that it will get back to it's January 2008 peak within 5 years, but certainly within 10.

        I could go through all sorts of complicated formulas, but let's assume you retired after working for just 20 years at the Dow's bottom in Jan 2009 when it was at 7100. A dollar invested in Jan 1989 would have returned a 5.65% CAGR. Not great, because you cashed out at the bottom of the market, but not too bad.

        Now, it's a little hard here to compare to social security,because SS is really more of a defined pension plan. I am willing to help work through the math and compare, but you've chosen a polemical argument, and not a reality-based one.

        November 22, 2011 at 3:31 pm |
      • David

        You need to wake up Jay, way back when, before IRA's, all that we had was Social Security and I paid my whole life into it and I damn well expect a return on it. The average person only gets maybe 1,000 a month from it, yet the politicians setup their own retirement compensation plan the taxpayers pay for and they get 80% of their political salary with a minimum of 5 years service. That's about 75,000 a year to our 12,000. If thats not ENTITLED I don't know what is.....

        SOLUTION: Force them to receive the same thing they expect all Americans to receive, the same benefits, after all our country was based on " ALL MEN ARE CREATED EQUAL ! ". Stop giving the rich loopholes to make sure they pay their fair share, get rid of Grover Norquist who is holding the people we voted into office hostage with his outdated "no tax increase". Replace any politician who doesn't do what the people he represents want and have them stop doing what he THINKS they want and need.

        We need a Congress that wants to work together and can compromise and to get rid of those that can't grasp that basic concept!

        The republicans want to blame Obama for what he inherited from there own loose cannon president George W. Bush who lied to the American people and to the world when he told us that their were WMD's in the middle east and started a war only to finish what his father didn't. To this day NO WMD's were ever found and how many lives did we lose in this war looking for them ? Too many, and also what cost to the American people. It's easy to blame the person in office when we have a congress who won't budge for their own selfish reasons or because they are chained by Norquist and his assine "no tax increase". We need people in office that will work together and stop making Obama the scapegoat!

        November 22, 2011 at 1:45 pm |
    • steveo

      Sara,

      Do we REALLy have a funding issue? Over thought is just might be a SPENDING issue?

      "Thank you for STANDING your Ground"? It's more like thanks to the DEMS and GOP for not knowing how to compromise! The best at it was Bill Clinton! He learned how to work with the opposition!

      As far as your "Thank you Dems for NOT stripping our SS and medicare". You might want to call off that parade! The President said he is going to veto any attempt to cancel the automatic cuts, which mean deeps cuts in BOTH the military and entitlement program budgets. Why? The GOP and the DEMS placed politics above ALL of us! It's almost time now to pay the piper! Yep, "Thanks for standing your ground" indeed!

      November 22, 2011 at 9:35 am |
    • steveo

      Sara,

      Do we REALLy have a funding issue? Over thought is just might be a SPENDING issue?

      "Thank you for STANDING your Ground"? It's more like thanks to the DEMS and GOP for not knowing how to compromise! The best at it was Bill Clinton! He learned how to work with the opposition!

      As far as your "Thank you Dems for NOT stripping our SS and medicare". You might want to call off that parade! The President said he is going to veto any attempt to cancel the automatic cuts, which mean deeps cuts in BOTH the military and ent-itlement program budgets. Why? Both the GOP and the DEMS placed politics above ALL of us! It's almost time now to pay the piper! Yep, "Thanks for standing your ground" indeed!

      November 22, 2011 at 9:36 am |
      • Trace

        steveo

        How's it going fella? Anyway...sara's pretty much right. Think about it.......smart guy.......The Bush cuts automatically go away. The top 1% get an automatic tax increase, back to 39%....can you say Clinton tax rates?

        These cuts don't happen until 2013, after the election. If Obama gets pass the clown show that is the GOP candidates, he WILL come back and restore the military budget and lessen any impact of cuts to entitlements.

        Just hold on for a minute. Sara is right! You may not like it, but she is.

        November 22, 2011 at 9:45 am |
      • steveo

        Trace,

        Sara is right but from a lefty point of view. Somebody else is correct from their point of view. The government takes in about $2.2 trillion but are spending over $3 trill and yet that is not a spending issue? Am I missing something here? You want more money? Then get GE to pay up! Close the tax loop holes! It is real arrogant for Jeff Immelt to sit with the President, grin like a Chesire cat and while the Jobs Czar is the CEO of a company that is paying nothing AND building a plant in China! No question he's the job Czar, the question is for who: America or China!

        You said: after the election. If Obama gets pass the clown show that is the GOP candidates, he WILL come back and restore the military budget and lessen any impact of cuts to entitlements" Really? Then explain why the veto threats now. Unless it's just politics as usual. I agree its a clown show you just forgot to understand your boys are just as big a part of it!

        BTW I'm good and hope you are too!

        November 22, 2011 at 11:26 am |
      • steveo

        Trace,

        You said: "The Bush cuts automatically go away. The top 1% get an automatic tax increase, back to 39%....can you say Clinton tax rates?"

        I say: I'll bet NONE of that goes to pay down the debt but rather another pet project!

        November 22, 2011 at 12:49 pm |
      • jean2009

        @ steveo
        George W. Bush had an opportunity to pay down the debt, but he thought it was easier to buy votes for a second presidential run, by looting the treasury to send everyone refund checks, and giving his rich backer a big tax cut bonus. We would be a lot better off, and a stronger country today, had Al Gore won in 2000.

        November 22, 2011 at 1:34 pm |
      • steveo

        jean2009

        @ steveo
        George W. Bush had an opportunity to pay down the debt, but he thought it was easier to buy votes for a second presidential run, by looting the treasury to send everyone refund checks, and giving his rich backer a big tax cut bonus. We would be a lot better off, and a stronger country today, had Al Gore won in 2000.
        ------
        I will not argue that as it is a very valid point. Bush missed a golden opportunity. But since Bush is no longer President and hasn't been for three years, the real question is What will Obama do with his opportunity?

        As for your last point about Gore, we will never know, will we? As hypocritical as he has been on imaginary "carbon credits" and his ever expanding carbon foot print (monsterous house, private jets) I seriously doubt it! But we will never know! I have no proof one way or the other but no one does!

        November 22, 2011 at 1:58 pm |
    • steveo

      One more thing,

      You thanked the DEMS for "Standing their ground" and others thank the GOP of "standing their ground". The results: A whole bunch of nothing! All while America fades! Yep! Thank you!

      November 22, 2011 at 9:43 am |
      • Trace

        steveo,

        Got to be hard to breathe in that vacuum you live in. No information can get in ...huh?

        The Bush cuts will AUTOMATICALLY EXPIRE. Thank your wonderful GOP/Tea Pee pants representatives for devising this entire plan to begin with.

        Nobody ever said those people are "thinking people" but every now and then "even a blind squirrel can find a nut" LOL

        Back to the Clinton Tax Rates for EVERYBODY.

        November 22, 2011 at 9:52 am |
      • steveo

        Trace,

        It appears the glitter and the noise from your pom poms are interfering again! We are talking about the failure of GOP and your DEMS here. I know it hurts your heart but sorry, your boys failed too! Rah! Rah!

        November 22, 2011 at 9:59 am |
  10. Trace

    John,

    Your fox news talking points panties are showing. EVERYONE, I mean EVERYONE KNOWS...given the amount of debt, this has to be about BOTH NEW REVENUES AND SPENDING CUTS. And just a note to all fox news bumper sticker posters....HIGHER TAXES HAVE NEVER RESTRICTED OR RESTRAINED HIRING...never ever.

    Further, this deal was constructed by John Boner and Teahadists during the debt ceiling debt. Remember his saying he got 90% of what he wanted? IT SPECIFICALLY SAID THIS IS AN ACTION BY CONGRESS AND THE PRESIDENT WASN'T TO BE INVOLVED. Its so difficult explaining stuff like this to people like you ....facts are so hard for some people to remember.

    During this very difficult time in our country, its people like you, that wouldn't let a fact get in the way even if it makes them sound completely stupid. Just doesn't matter how silly you look – right?

    Take a class in economics and get back to us.

    November 22, 2011 at 9:34 am |
  11. Dee

    Peter

    I agree with you it would have been a waste of the Presidents' time the last time he was there they criticized him he is damned if don't and the same if he did. Kerry said the GOP did not want him involved they said it would be too political. So yes I would blame the GOP for trying to protect the rich on the backs of the American people.

    I am so glad they had the trigger in place that was agreed upon by the Repulicans and the Democrats they out played their hand this time.

    We need to hold their salaries and vote all of them out. It will take eight years for this President to straighten this mess out, but I am confident if he is elected again we will see a country that is moving into the 21st Century

    God forbid if they elect Gingrich he is one of the causes of Congress acting this way. He is out of touch with the young people in this country.

    November 22, 2011 at 11:02 am |
  12. irvin crews

    why doesn't cnn do an in depth review of grover norquist? it would seem from all that has been written he is the 1 person responsible for the gop not having the courage or backbone enough to try to make a compromise. his threat to have them defeated in their reelection is the main motive for their unyielding positions. it seems that he alone is the gop and all the congressmen and senators are merely puppets to do his bidding. this is a sad situation for all america to be held hostage by 1 meglomaniac.

    November 22, 2011 at 1:03 pm |
    • David

      60 minutes did, you can see it here : http://www.youtube.com/watch?v=K25kqP0YdZ0

      December 15, 2011 at 1:43 pm |
  13. Dale

    I will pay you $2 million for your election campaign if you do this for me.
    I will give you free golf course pass and resort pass if you do this for me.
    I have a win-win stock deal if you do this for me.
    Every one of these congressmen and senators are guilty of this, even the president of United States, Fortune 500 Companies, Big Unions, they own Washington DC.
    Vote all incumbents out, insist upon "two year term limit", insist upon balanced budget amendment, and get rid of big government dictating bureaucrats.
    But there is going to be one big problem, Fortune 500 companies and Big Unions are going to do everything they can to keep these people in place, because they already own them they have all of their strings attached, and they will do everything they can to stop the two year term limit because that means they will have to go through the process of buying congressmen and senators every eight years.

    I will say it again vote all incumbents out, need to make this message viral in every way possible.

    November 22, 2011 at 2:49 pm |
  14. brian

    washington is full of silver tongue devils that will sell america to the highest bidder donations aka legalized bribery . the media shows the candidates they want and cut the ones they don't . the ones that pull the string behind the curtain are the rich elite . we are the pawns that take it in the a55 and say nothing to stop it from happening . we vote in the same trash every year . my aren't we a great nation , more like a nation of sheep that are told what to do and except it . drunk on the idea that the government is needed to feed us cloth us save us protect us and save us from ourselves because we cannot be trusted to just that . oh and one more thing , we love being taxed out of our mind and have that money given away to others for sh1t that doesn't benefit 1 american what so ever .

    November 22, 2011 at 9:29 pm |