Economics Professor Thomas "Danny" Boston weighs in on the eve of sequestration.
Republicans appear to have outmaneuvered Democrats on the budget battle. What Republicans are betting on is the size of the general cuts in government spending (sequester) is not deep enough to derail the economy and cause a recession.
At present, the odds favor the Republican’s bet. However, public opinion and expectations may change rapidly as a result of the sequester. If that happens, a precipitous drop in consumer spending and business investment will occur, dragging the economy into a recession sooner than the Republicans could have imagined.
Working against the Republicans bet are three things.
To continue reading Boston's post, visit his Gazelle Index blog.
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