Analyst Claims Sequestration Recession Projections Are Wrong
ST. LOUIS, MO (KPLR)– Deep automatic federal budget cuts called sequestration started Friday because the president and republicans in congress can’t agree on how to reduce the deficit.
There have been warnings that these cuts will slash vital government services and push the US back into a recession. But one local analyst says those projections are wrong.
The Show-Me Institute is a libertarian-leaning, free-market think tank based in St. Louis. They claim predictions of disaster are way overblown.
Federal Aviation Administration workers face one unpaid day off every two weeks. The government says it may have to close 100 air traffic control towers. Unpaid furlough notices went out Friday to a million federal workers.
The White House warns the cuts mean thousands of children, including 1,200in Missouri and 2,700 in Illinois will be kicked out of the head start program.
The cuts will also hit all branches of the military as the Pentagon braces for 9 percent across the board cuts.
It could be awhile before we know who’s right, since some of these cuts will take weeks or months to go into effect.