Fiscal Contraction News Today

Over 734,000 civilian defense department employees furloughed with a 20% pay cut over the next 22 days. and -- >> thats immediate. >> thats immediate. >> three-quarters of a million people over the next few weeks. >> thats right. they are going to cut become on gas purchases, purchases of clothing for their children, food. this goes directly to the bottom line of growth in this economy, and its going to be a damper on that growth. >> jared, from an economic perspective, the prescriptions that we...

If you can believe that, and its 2013, we will likely see over 734,000 civilian defense department employees furloughed with a 20% pay cut over the next 22 days. and -- >> thats immediate. >> thats immediate. >> three-quarters of a million people over the next few weeks. >> thats right. they are going to cut become on gas purchases, purchases of clothing for their children, food. this goes directly to the bottom line of growth in this economy, and its going to be a damper on that growth. >> jare...

Over 734,000 civilian defense department employees furloughed with a 20% pay cut over the next 22 days. and -- >> thats immediate. >> thats immediate. >> three-quarters of a million people over the next few weeks. >> thats right. they are going to cut become on gas purchases, purchases of clothing for their children, food. this goes directly to the bottom line of growth in this economy, and its going to be a damper on that growth. >> jared, from an economic perspective, the prescriptions that we...

Important word here. you said something to the effect of an unnecessary manufactured crisis. remember, this is not the way governance is supposed to look, especially at a time when the economy is already too weak. so instead of thinking about how can we help things get better, they keep setting fiscal time on one after another. and by the way, this is not the beginning of awe strarausterity. we already lost over $100 billion in peoples paychecks through the expiration of the payroll tax break th...

Because its such a huge fiscal contraction to all take in one year. so if we go over and stay over, well return to recession. and that means that the gains that weve been making on the unemployment rate, too slow, mind you, but gains that have been pushing the rate in the right direction would reverse. and if we stay over the cliff, the unemployment rate could go up as high as 9% by the end of next year. this would be a disaster for people who are still struggling with the residual of the great ...

But they did in this case because its such a huge fiscal contraction to all take in one year. so if we go over and stay over, well return to recession. and that means that the gains that weve been making on the unemployment rate, too slow, mind you, but gains that have been pushing the rate in the right direction would reverse. and if we stay over the cliff, the unemployment rate could go up as high as 9% by the end of next year. this would be a disaster for people who are still struggling with ...

Coming up. we also have expiration of unemployment insurance benefits. so what we have basically is a contraction, a fiscal contraction of $600 billion, which is basically like taking $2,000 per person of the united states out of their pockets and asking them to hand it back to the government and asking them to do it within the first four months of the year, most of this stuff will come due in april. if i ask them to hand me $2,000 tomorrow theyre going to have to immediately curtail their spend...

Sounding, were not that great. 1.8% print is not good. any way you look at it. >> what country looks better than us, including the stakt right now. >> i dont know, maybe chinese looks good right now. growing at 8%, hey, i would like-- >> the stock market tanked and huge inflation problems and some bureaucracy there. i dont think theyre looking better than america right now. >> were not having is right now. >> mike, what do you think of the growth? >> i cant think of any pop star lead in as compa...

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In the months ahead. do you have any hope that something can be done in the near term? whats your whole take on this payroll tax back and forth? >> not very much hope. first of all, i guess we should all thank heaven that we got the payroll tax continuation because otherwise that was going to be a heavy fiscal contraction. >> thats only two month, right? >> its crazy. >> im assuming well get the other ten. thats a political assumption. >> right. >> youre quite right. >> if its only two months, w...