By Brai Odion-Esene

WASHINGTON (MNI) – With the uncertainty of a U.S. default lifted,
President Obama Tuesday called on lawmakers to shift the focus back to
ways in which spark economic growth and get millions of Americans back
to work.

“I’ll be discussing additional ideas in the weeks ahead to help
companies hire, invest, and expand,” Obama said in a prepared statement
after the Senate passed the Budget Control Act of 2011.

Congress has voted to approve a piece of legislation that will
reduce the deficit and avert a default that would have “devastated” the
U.S. economy, Obama said.

He acknowledged the detrimental effect that the debt impasse had on
the economic recovery, saying the nation did not need lawmakers to “come
along with a manufactured crisis to make things worse.”

“It’s pretty likely that the uncertainty surrounding the raising of
the debt ceiling, for both businesses and consumers, has been unsettling
and just one more impediment to the full recovery that we need,” he
said.

His spokesman, Jay Carney, told reporters at the regular White
House briefing that the president would sign the debt-hike bill as soon
as he received it from Capitol Hill.

Obama cautioned that the bill is just an initial step, as both
parties must now work on a larger plan to cut the deficit, which he said
is important for the long-term health of the economy.

“And since you can’t close the deficit with just spending cuts,
we’ll need a balance approach where everything is on the table,” Obama
said.

This will mean protecting programs like Medicare, while overhauling
the tax code so the wealthiest “pay their fair share,” he said. Obama
also included tax subsidies enjoyed by the oil and gas industry, as well
as tax loopholes, in the list of issues that must be addressed.

“We can’t balance the budget on the backs of the very people who
have borne the biggest brunt of this recession,” he said. “Everyone’s
going to have to chip in.”

In addition to fighting for a reduced tax burden for the middle
class, Obama said he will continue to press ahead with efforts to spur
job creation and faster economic growth.

Deficit reduction is part of that agenda “but it is not the whole
agenda,” Obama said.

More will be needed, he continued, saying once Congress returns
from its summer recess, it will immediately need to take “bipartisan,
common sense” steps that will encourage business to expand their
payrolls.

The first step should be extending the middle class tax cuts, he
said, in order to encourage spending, while ensuring that the massive
ranks of the unemployed retain access to unemployment benefits.

Obama also called on Congress to ratify pending Free Trade
agreements, which he said would boost U.S. exports. He also repeated
his call for investment in rebuilding America’s infrastructure, arguing
that “we have workers who need jobs and a country that needs
rebuilding.”

“There’s no reason for Congress not to send me those bills so I can
sign them into law right away as soon as they get back from recess,”
Obama said. “Both parties need to take responsibility for improving this
economy.”

It should not take the risk of a crisis to get lawmakers to act
together, Obama said, saying both the administration and Congress must
do everything in its power to grow the economy and kickstart he labor
market.

The U.S. Senate Tuesday approved compromise legislation raising the
debt ceiling, sending it to President Obama for his signature and ending
a months-long political battle. The Senate approved the bill on a 74 to
26 vote.

The legislation passed calls for about $1 trillion in spending
cuts, plus an additional $1.5 trillion to be determined by a select
committee through entitlement and tax reforms by the end of this year.
“It’s an important first step to ensuring that, as a nation, we live
within our means,” Obama said.

At the same time, the president added, it allows for key
investments in areas like education and research that foster job
creation. “And assures that we are not cutting too abruptly while the
economy is still fragile.”

** Market News International Washington Bureau: 202-371-2121 **

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