WASHINGTON - January 30 - The government reported on Wednesday that the U.S. economy contracted by 0.1 percent in the fourth quarter. The bad news comes as Congress and the White House are debating spending cuts set to take place on March 1. Robert Borosage, co-director of the Campaign for America’s Future warns that cuts in government spending would further slow economic growth.

Statement from Robert Borosage, co-director of the Campaign for America’s Future:

"This is the first time that the economy has contracted since the depths of the great recession. This comes at a time when Republicans in Congress are planning to hold the economy hostage over and over again to attempt to extract painful cuts in government spending.

"As Europe has shown and the IMF has warned, Inflicting austerity on a weak economy is ruinous and is likely to drive us back into a recession. Those dismissing the downturn as due to an odd drop in government spending should consider that more of these are on the docket.

"It is time to focus on fixing the economy. Congress should repeal the sequester and should assure creditors that the U.S. will pay its debts by lifting the debt ceiling. Also Congress should stop threatening to shut the government down."