This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

AFGE Statement On GDP Decline

WASHINGTON, Jan. 30, 2013 /PRNewswire-USNewswire/ -- American Federation of Government Employees National President J. David Cox Sr. today issued the following statement in response to news that the U.S. economy contracted in the fourth quarter of 2012, as measured by the Gross Domestic Product (GDP):

The decline in GDP was not a statistical anomaly. It was a direct consequence of budget austerity – the economic policy that is the essence of the Budget Control Act and its impending sequestration.

Our economy would not have shrunk if not for the 6.6% decline in government spending, particularly the 22.2% decline in defense spending. If not for this budget austerity, GDP would have actually risen. The Center for Economic and Policy Research calculated that this decline in spending cut 1.33 percentage points from GDP growth.

Moving forward, we can expect an even steeper decline in economic growth if Congress fails to cancel sequestration. Cutting an additional $85 billion in government spending through sequestration will be ruinous not only to economic growth, but also to the lives of furloughed federal employees and people who depend upon them to provide much-needed government services.

Sequestration could result in two million federal employees being furloughed – in effect, laid off without pay – for up to 30 days in the remainder of 2013. These workers will have less money to spend, causing the GDP to decline further or grow much more slowly than it should. Why would Congress refuse to act to stop this madness? What good can come of sequestration?  The answer is absolutely nothing good – only hardship and decline.

Congress needs to show some courage and brains and cancel sequestration.  The growing acquiescence to sequestration needs to end. Sequestration punishes the public by endangering our food supply, our borders, a ready military, and basic benefits like Social Security and nutrition assistance for women and children. And it imposes unconscionable hardship on federal employees who have already sacrificed more toward deficit reduction than any other group of Americans.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,745.98 -5.41 -0.03%
S&P 500 2,109.00 +0.43 0.02%
NASDAQ 5,128.7850 +17.0520 0.33%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs