Obama: Shrinking deficit proves skeptics wrong

President Obama touted that the federal deficit has been cut by two-thirds under his administration’s policies in his State of the Union address Tuesday night.

“At every step, we were told our goals were misguided or too ambitious; that we would crush jobs and explode deficits,” Obama said. “Instead, we’ve seen the fastest economic growth in over a decade, our deficits cut by two-thirds, a stock market that has doubled, and health care inflation at its lowest rate in fifty years.” 

The $483 billion deficit of the fiscal year 2014, which ended last September, was the lowest budget deficit since 2008, before the recession hit.

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“Middle-class economics works,” said Obama, who added, “We can’t slow down businesses or put our economy at risk with government shutdowns or fiscal showdowns.”

Obama has warned Republicans they must fund the Department of Homeland Security by Feb. 27 without undermining his immigration policies.

“We can’t put the security of families at risk by taking away their health insurance, or unraveling the new rules on Wall Street, or refighting past battles on immigration when we’ve got a system to fix. And if a bill comes to my desk that tries to do any of these things, it will earn my veto,” he said Tuesday.

On Feb. 2, Obama said he will send Congress a budget request for fiscal 2016 full of ideas that are “practical, not partisan.” 

The budget will include items that will help people afford child care, retirement, a home, healthcare and college, he said.

The president did not mention sequestration budget caps that are set to return in October and could trigger automatic spending cuts across the government if Congress appropriates more than the limits.