Washington ( CNN ) -- President Barack Obama called Monday for political will from both parties to fix what he described as the country 's `` eminently solvable '' economic problems in the wake of last week 's downgrade of its credit rating by Standard & Poor 's . In remarks to reporters that were added to his daily schedule , Obama noted the Friday downgrade from AAA to AA+ occurred because `` they doubted our political system 's ability to act '' following the grueling negotiations with congressional leaders that preceded last week 's agreement on a debt ceiling increase . Now it will take political will on the part of Democrats and Republicans , the president said , calling on all involved to stop refusing `` to put what 's best for the country ahead of self-interest or party or ideology . '' `` We knew from the outset that a prolonged debate over the debt ceiling , a debate where the threat of default was used as a bargaining chip , could do enormous damage to our economy and the world 's , '' Obama said on a day the Dow plunged 634 points in reaction to the S & P downgrade . `` That threat , coming after a string of economic disruptions in Europe , Japan and the Middle East , has now roiled the markets and dampened consumer confidence and slowed the pace of recovery . '' he said . Calling the situation a `` legitimate source of concern , '' Obama said the `` good news '' is that `` our problems are eminently solvable . And we know what we have to do to solve them . Later at a Democratic fund-raiser , Obama said he inherited the nation 's economic problems . `` Look , we do have a serious problem in terms of debt and deficit , and much of it I inherited when I showed up , '' he said . `` And because of the financial crisis , it got worse . So there 's no doubt that we 've got to fix our long-term finances . '' The nation needs to tackle its budget deficits over the long term , he told reporters earlier , adding that he will be presenting his ideas for how to proceed in coming weeks as a special congressional committee set up under the debt-ceiling agreement begins its work . Obama offered no details of his plan , and White House Press Secretary Jay Carney also provided no additional information when questioned later by reporters . In his remarks , Obama said the issue of the most immediate concern to most Americans and to financial markets was the slow pace of recovery from economic recession . He renewed his call for Congress to extend into next year the payroll tax cut that took effect in January as well as funding for unemployment insurance benefits , saying both steps would spur economic activity by putting money into the hands of consumers . Noting public concerns about the economy , Obama declared : `` Markets will rise and fall , but this is the United States of America . No matter what some agency may say , we 've always been and always will be a triple-A country . '' To tackle the mounting federal deficits and national debt , Obama has called for a comprehensive agreement that would cut spending , reform entitlement programs and increase tax revenue . `` What it requires is that those of us who have the capacity can pay our fair share when it comes to taxes , like we did just as recently as 2000 , when Bill Clinton was president , and requires us to make some modest adjustments in programs like Medicare that allow us to get a better bang for our buck on health care , '' Obama said at the evening fund-raiser . `` And if we did those things over the course of 20 , 30 years , because this is a 20- or 30-year problem , then the problem would be solved , '' he said . `` It 's not rocket science . And it does n't require us to decimate the things that we know are going to help us grow and become competitive . '' Republicans oppose any kind of tax increase , and many reject increased tax revenue even if the tax rates remain the same or are lowered . The tax revenue issue , as well as the scope of entitlement reforms , have been the main stumbling blocks to a major deficit reduction deal . `` Over the next several months , there will be tremendous pressure on Congress to prove that S & P 's analysis of the inability of the political parties to bridge our differences is wrong , '' said House Majority Leader Eric Cantor said in a memo to GOP members . `` In short , there will be pressure to compromise on tax increases , '' he said . `` We will be told that there is no other way forward . I respectfully disagree . '' The special congressional committee set up under a debt ceiling deal will comprise 12 members -- six Democrats and six Republicans -- from the House and Senate . It must present its recommended package of deficit reduction steps by November 23 , and Congress must vote on the package with no amendments by December 23 . Congressional leaders have until August 16 to appoint members to the special committee . CNN 's Tom Cohen contributed to this report .
NEW : At a Democratic fund-raiser , Obama says he inherited economic woes . NEW : `` It 's not rocket science '' House Majority Leader Cantor says there will be pressure to compromise on tax hikes . The Dow plunges 634 points .