Obama campaign slaps back at Romney's 'out of touch' remark

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"He said the private sector is doing fine. Is he really that out of touch?" Mitt Romney blasted Obama on the campaign trail in Iowa that day. "I think he's defining what it means to be out of touch with the American people."

Obama said on Friday afternoon it’s “absolutely clear” the economy is not fine.

"That's why I spent yesterday, the day before yesterday, this past week, this past month and this past year talking about how we can make the economy stronger," he said. 

"I think the American people understand what he was saying on Friday," Cutter told CNN, defending improvement in the private sector under Obama and explaining that the president is looking to address what is now the economy's most urgent problem: layoffs in the public sector.

"The president actually was speaking to the American people on Friday with a solution," she said. "Mitt Romney's solution on how to strengthen the economy [is to] fire more people."

The Obama campaign this past week has hammered Romney's resistance to federal funding for local teachers, police and emergency programs: public-sector jobs that the campaign claims he wants to cut.

Romney campaign surrogate Bay Buchanan, speaking on CNN following Cutter, said that Romney "obviously wants states to be able to hire who they need to take care of communities," but based on their own budget. 

"Clearly every state and every locality decides on how many teachers, police are good," she said, arguing that community budgets depend on a strong national economy, Romney's main focus in the campaign.