In a series of blog posts, BPC's Debt Reduction Task Force presented the details behind the Budget Control Act. The posts examined discretionary spending, economic growth, future debt as a percentage of GDP, and the prospect of automatic sequester cuts.
The Sequester: What You Need to Know
February 22, 2013
"Absent a new law passed by Congress, the president has little ability to spare one type of spending and cut more from another. This creates uncertainty in both the public and private sector because there remains much to be determined about how PPAs will be defined by agency administrators and how the cuts will be implemented. This inability to plan is already acting as a drag on economic growth.
"Furthermore, the immediate and across the board nature of the cuts, along with their magnitude concentrated in a seven-month period, will impair economic growth as the year progresses. At BPC, we estimated last year that the sequester would reduce 2013 gross domestic product (GDP) growth by half a percentage point, and would cost the economy approximately one million jobs over the next two years. More recent estimates released by the CBO and Macroeconomic Advisors have roughly confirmed these projections.
"Sequestration’s effect will be akin to that of a slow motion train wreck. The uncertainty has already impacted economic growth, and while there won’t be a sudden “cliff” that occurs on March 1, the ramifications will steadily worsen as time passes."
Read the full post here.
The sequester could cost the economy over 1 million jobs
A report from BPC's Task Force on Defense Budget and Strategy, a joint effort of the Economic Policy Project and the Foreign Policy Project
Now It’s Time for Sequester Anxiety
January 29, 2013
Sequestration Preparations, Procedures, and Problems
August 3, 2012
Layoff Notices Could Wreak Political Havoc Ahead of Election Day
July 30, 2012
Scheduled Sequester Cuts to Domestic Programs Pose Serious Threat to Still-Struggling Economy
July 20, 2012
The Consequences of the Sequester
June 8, 2012
The 2013 Sequester May Not Be What You Think
June 7, 2012
Everything You Ever Wanted to Know About the Sequester
Updated May 18, 2012
Three Reasons Why $1.2 Trillion Isn’t Really $1.2 Trillion
January 23, 2012
More posts in the Budget Control Act blog series: