"The last thing a government should do in the middle of a recession is to cut back on spending," the president said.
Yes, that is exactly what it should do. Government 'investment' is not an efficient generator of economic growth at all. The taxes they collect destroy about 2 jobs for each unsustainable one it 'creates'. The government 'investments' are also misallocations of resources because they don't care if their program makes any economic sense.
Raising taxes and spending are the dumbest things you can do in a recession, only topped by massive sustained debt spending. Obama is doing it exactly backwards.