Strategic Briefing | 2.21.13 | Budget Cuts & The Economy

Don’t Fear the Sequester | Brian Wesbury, First Trust
The first thing to realize is that implementing the sequester is not the end of the world. Not by a long shot.
Budget Cuts Seen as Risk to Growth of U.S. Economy | B. Appelbaum and A. Lowrey, NY Times
The fresh round of federal spending cuts scheduled to begin next week would slow economic growth in the next year, though not nearly as much as going over the so-called fiscal cliff might have, economists said.
What Kind of Cuts Grow the Economy? | Rep Kevin Brady, Nat’l Review
Spending reductions must be large, credible, and politically difficult to reverse.
The sequester would really cut the budget | Jamie Dupree, Atlanta Journal-Constitution
I know it’s hard for many people to believe, but instead of just trimming the rate of increase in the federal budget, the $85 billion in automatic budget cuts set to hit on March 1 would actually result in less spending by Uncle Sam.
CBO Testifies on the Budget and Economic Outlook | Congressional Budget Office
We anticipate that economic growth will remain slow this year, because the gradual improvement we see in underlying economic factors will be offset by a tightening of federal fiscal policy scheduled under current law.
Schroders’ Joanna Shatney cautiously optimistic as mandatory spending cuts loom over US | Joanna Shatney, Investment Europe
While GDP will be hit by these government spending changes, we see the multiplier effects as being more limited than the tax increases agreed to at the end of 2012 – meaning any effects from sequestration should be more manageable for corporate earnings.