The economy shrunk in the fourth quarter — for the first time in three years — and one of the critical reasons was a drop in defense spending. Apparently, contractors took precautionary steps and held onto money in case the federal government failed to avert the fiscal and tax crisis known as the fiscal cliff.
But there's now a new deadline — automatic budget cuts, known as sequestration, which may hit at the beginning of March.
Originally published on Wed January 9, 2013 5:18 pm
Credit Mike Groll / AP
From Superstorm Sandy to gun laws to the fiscal cliff, national issues are on the minds and the lips of the nation's governors setting their state agendas this week.
Some want Congress and President Obama to act; others urged state legislators to do what Congress hasn't.
"No one hunts with an assault rifle. No one needs 10 bullets to kill a deer. End the madness now," an impassioned New York Gov. Andrew Cuomo said Wednesday in calling for the state to enact the "toughest assault weapon ban in the nation, period."
As weary as many Americans grew of campaign commercials last month, they may be getting even more annoyed this month by endless talk of the fiscal cliff, the massive collection of tax increases and spending cuts set to take effect at year's end.
It's easy to understand the urge to stick fingers in ears and loudly chant "la-la-la-la." The budget problems are indeed complicated, and the negotiations tedious.
But resolving the mess is extremely important: Without a solution, every person who gets a paycheck or has investments will see his or her taxes rise.