Entries in Recession (2)


Santorum Blames Recession on High Gas Prices

Bill Pugliano/Getty Images(LANSING, Mich.) -- Rick Santorum told an audience Monday that the 2008 recession was caused not by unsustainable housing prices or reckless lending practices, but by high gas prices and Americans who could not pay their mortgages.

"We need to look at the situation of gas prices today. We went into a recession in 2008 because of gasoline prices," Santorum said to an enthusiastic crowd at a hotel. "The bubble burst in housing because people couldn't pay their mortgages because we're looking at four-dollar-a-gallon gasoline. And look at what happened, economic decline."

After his rally, which was packed with families with their children, Santorum said he did not misspeak when he was asked to explain his comments. He said it was a "factor" in the recession and housing bubble.

"Energy prices were spiking in the summer of 2008 and that was a factor," Santorum told reporters.

Santorum was giving one of his last pitches to Michiganders who vote Tuesday, telling them to "stand up." He's head-to-head in polls in Michigan, despite Romney being born and raised in the state and Santorum having none of the organization the former Massachusetts governor has.

The former Pennsylvania senator said he is going to "keep working hard" here and "do the best we can," but he's clearly buoyed by giving his rival such chase in his home state.

"I think the fact that we are doing as well as we are is pretty big deal in this state," Santorum said.

He went after Romney, saying it was a "joke" that the former Massachusetts governor and his super PAC are running ads against him in Michigan. He told Michigan voters they have the opportunity to "stop the joke."

Romney's super PAC, "Restore our Future," has spent $2,517,307 opposing both Newt Gingrich and Santorum. Santorum's super PAC, "The Red, White, and Blue Fund," is spending $1,281,500 on ads.

Santorum got a huge applause line and calls of "Replace him!" when he told the crowd that if President Obama was "at the (nation's) founding he would have written a Declaration of Dependence, not Independence."

Copyright 2012 ABC News Radio


McConnell: The Economy Isn't Funny, Mr. President

JEWEL SAMAD/AFP/Getty Images(WASHINGTON) -- Capitalizing on President Obama's remarks on the economy over the last few weeks -- from speaking about "speed bumps" to "headwinds" and then laughing about those so-called "shovel ready" projects -- Senate Minority Leader Mitch McConnell, R-KY., said that the American people out of work do not find any of this very funny.

"They're getting little comfort from an administration that seems more interested in deflecting the bad news than facing up to it," McConnell said on the Senate floor Wednesday. "Amid the onslaught of bad news last week, President Obama's message was that we'd hit some bumps in the road and that people need to be patient in the face of what called economic 'headwinds.' He even joked about the wildly mistaken predictions he and others at the White House made a couple years back about the job-creating potential of the Stimulus."

President Obama told Chrysler plant workers in Toledo, Ohio on June 3 -- the same day it was announced that the nation's unemployment rate rose to 9.1 percent -- that "there are always going to be bumps on the road to recovery," and often speaks about the "headwinds"  that has contributed to the slower-than-expected economic recovery.

On Monday during President Obama's conversation with his Jobs Council while one member was explaining how government regulations often kill projects, the president leaned into his microphone and adlibbed "'Shovel ready' was not as shovel-ready as we expected," with a laugh. Members of the council chuckled too.

The Senate Minority leader said that 14 million Americans looking for work right now don't see the humor in the president's quips.

"In fact, I think Americans are deeply troubled by the fact that an administration which claims to be concerned about creating jobs has spent the better part of the past two and a half years pushing policies that seem like they were designed to destroy them. Indeed, I think there's a growing consensus out there that far from improving the economy, the President has made it worse."

Copyright 2011 ABC News Radio

ABC News Radio