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GDP Report: Sequestration Continues To Drag On Economic Growth
GDP Report: Sequestration Continues To Drag On Economic Growth
By Alan Pyke
The U.S. economy grew at an annual rate of 1.7 percent from April to June, above the consensus expectations of economists, government analysts reported Wednesday. Reuters’ survey of economists had predicted quarterly growth of 1 percent, with some warning the growth rate might have been as low as 0.4 percent. The preliminary number released by the Bureau of Economic Analysis (BEA) is subject to revisions and is still below the growth rate required to bring down unemployment.
The number could have been even stronger without sequestration. The share of growth related to government spending detracted 0.08 percentage points from overall growth, reflecting a 1.5 percent decline in government consumption and investment over the second quarter of the year. The BEA also revised GDP growth for the first quarter down to 1.1 percent from an initial figure of 1.8 percent.
Austerity had already taken a large bite out of the last two quarterly GDP figures, which saw much larger slides in government consumption, and Wednesday’s release marked the 8th quarter out of the past 10 where public policy was harming rather than helping economic growth:
<...>
The International Monetary Fund has warned the “excessively rapid” cuts from sequestration are undermining economic growth both now and in the future. The Congressional Budget Office announced last week that reversing sequestration would create between 900,000 and 1.6 million jobs and add 0.7 to 1.2 percentage points to GDP.
- more -
http://thinkprogress.org/economy/2013/07/31/2388131/gdp-report-sequestration/
By Alan Pyke
The U.S. economy grew at an annual rate of 1.7 percent from April to June, above the consensus expectations of economists, government analysts reported Wednesday. Reuters’ survey of economists had predicted quarterly growth of 1 percent, with some warning the growth rate might have been as low as 0.4 percent. The preliminary number released by the Bureau of Economic Analysis (BEA) is subject to revisions and is still below the growth rate required to bring down unemployment.
The number could have been even stronger without sequestration. The share of growth related to government spending detracted 0.08 percentage points from overall growth, reflecting a 1.5 percent decline in government consumption and investment over the second quarter of the year. The BEA also revised GDP growth for the first quarter down to 1.1 percent from an initial figure of 1.8 percent.
Austerity had already taken a large bite out of the last two quarterly GDP figures, which saw much larger slides in government consumption, and Wednesday’s release marked the 8th quarter out of the past 10 where public policy was harming rather than helping economic growth:
<...>
The International Monetary Fund has warned the “excessively rapid” cuts from sequestration are undermining economic growth both now and in the future. The Congressional Budget Office announced last week that reversing sequestration would create between 900,000 and 1.6 million jobs and add 0.7 to 1.2 percentage points to GDP.
- more -
http://thinkprogress.org/economy/2013/07/31/2388131/gdp-report-sequestration/
The Democratic budget eliminates the sequestration cuts, but Republicans are blocking it.
Patty Murray: Our budget is balanced, fair
Unlike House Republicans, Democrats in the Senate take a responsible approach toward tackling the deficit.
<...>
The highest priority of the Senate budget is protecting our economic recovery and laying down a strong foundation for broad-based economic growth.
It responsibly replaces the harmful cuts from sequestration that threaten 750,000 jobs this year alone. And it invests in infrastructure, education and innovation...Our budget also strengthens and protects Medicare and other programs seniors and families depend on, because we don't think they should have to bear the burden of deficit reduction alone.
Our budget also tackles our deficit and debt responsibly. It builds on the $2.4 trillion in deficit reduction enacted since 2010 with an additional $1.85 trillion in new savings — exceeding the bipartisan goal laid out by the bipartisan Simpson-Bowles Commission.
We do this in a balanced and fair way, with one half from responsible spending cuts across the federal budget, and one half from closing wasteful loopholes and deductions that benefit the wealthiest Americans and biggest corporations, such as those that allow offshore tax abuse or provide deductions for shipping jobs overseas.
- more -
http://www.usatoday.com/story/opinion/2013/03/14/democratic-budget-patty-murray/1989075/
Unlike House Republicans, Democrats in the Senate take a responsible approach toward tackling the deficit.
<...>
The highest priority of the Senate budget is protecting our economic recovery and laying down a strong foundation for broad-based economic growth.
It responsibly replaces the harmful cuts from sequestration that threaten 750,000 jobs this year alone. And it invests in infrastructure, education and innovation...Our budget also strengthens and protects Medicare and other programs seniors and families depend on, because we don't think they should have to bear the burden of deficit reduction alone.
Our budget also tackles our deficit and debt responsibly. It builds on the $2.4 trillion in deficit reduction enacted since 2010 with an additional $1.85 trillion in new savings — exceeding the bipartisan goal laid out by the bipartisan Simpson-Bowles Commission.
We do this in a balanced and fair way, with one half from responsible spending cuts across the federal budget, and one half from closing wasteful loopholes and deductions that benefit the wealthiest Americans and biggest corporations, such as those that allow offshore tax abuse or provide deductions for shipping jobs overseas.
- more -
http://www.usatoday.com/story/opinion/2013/03/14/democratic-budget-patty-murray/1989075/
Republicans are blocking $100 billion in immediate infrastructure spending.
http://www.democraticunderground.com/10023353869
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