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Fri Feb 1, 2013, 02:16 AM

 

2013 Sequestration Likely To Happen Despite Ominous GDP Report

Lawmakers and economists urged Congress to reconsider the massive spending cuts set to begin in March in light of Wednesday's alarming news that the nation's gross domestic product shrank for the first time in more than three years. But in a testament to beltway inertia, Congress seemed more likely than not to hit the fiscal snooze button.

Rep. Chris Van Hollen (D-Md.) said Wednesday's report from the Bureau of Economic Analysis was further proof that implementing "big austerity measures now will hurt the recovery." But the ranking member of the House Budget Committee added that the findings may not be enough to persuade lawmakers to replace the looming sequester, or a decade's worth of automatic cuts to defense and domestic spending.

"The question is how far over the ledge do we go before people take action," Van Hollen said in an interview. He said he hoped sequestration wouldn't be triggered. "But that may be required to bring some sense to the process. If you look at this report, there is no doubt that the spending slowdown contributed to the contraction and that was before the sequester. That was just in anticipation to the sequester."

With both sides convinced that the other's solution to sequestration would result in further economic woes, a resolution appeared far off, even after Wednesday's unexpected news. In issuing its report, the Bureau of Economic Analysis blamed a combination of factors for the 0.1 percent contraction of the economy, most notably a 15 percent reduction in federal spending and a 22 percent decline in national defense spending.

http://www.huffingtonpost.com/2013/01/30/2013-sequestration-gdp-report_n_2584742.html

6 replies, 836 views

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Reply 2013 Sequestration Likely To Happen Despite Ominous GDP Report (Original post)
HiPointDem Feb 2013 OP
Tierra_y_Libertad Feb 2013 #1
ProgressiveProfessor Feb 2013 #2
Tierra_y_Libertad Feb 2013 #3
ProgressiveProfessor Feb 2013 #4
libtodeath Feb 2013 #5
hfojvt Feb 2013 #6

Response to HiPointDem (Original post)

Fri Feb 1, 2013, 02:24 AM

1. 22% cut for defense. Not enough, but it's a start.

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Response to Tierra_y_Libertad (Reply #1)

Fri Feb 1, 2013, 02:34 AM

2. Those cuts will come from the R&D and civilians, not uniformed troops or the war efforts

Thousands are already being let go and furloughs planned for Federal civil servants in all parts of the executive branch. Prime contractor and subs will follow in 90-180 days. The recovery, such that it is, will be toast. California will be massively impacted, destroying what Jerry Brown is trying to do.

DoD needs to shrink, but it needs to be done in a manner that does not wreck the economy and endanger the next election.

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Response to ProgressiveProfessor (Reply #2)

Fri Feb 1, 2013, 11:29 AM

3. As I said.."not enough".

The expense of keeping the Sacred Cow of "defense" is what's ruining the economy.

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Response to Tierra_y_Libertad (Reply #3)

Fri Feb 1, 2013, 11:33 AM

4. An instantaneous cut in funding will place the economy and the party in a very precipitous position

A build down is the correct approach.

We agree on the goal, not the approach.

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Response to Tierra_y_Libertad (Reply #3)

Fri Feb 1, 2013, 11:44 AM

5. x1000

it needs to be reduced by half or more

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Response to HiPointDem (Original post)

Fri Feb 1, 2013, 01:36 PM

6. DU does not seem to much care

the apathy is strong

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