Everyone Will Feel the Fiscal Cliff Cuts
Posted at 10:15 a.m. on Dec. 7, 2012
NPR looks at the various ways that the across-the-board spending cuts in the “fiscal cliff” will impact the economy.
“Altogether, the cuts would eliminate more than $110 billion in federal spending in 2013 alone. Nearly half of that would be in defense spending. But there would also be cuts in education, health care and law enforcement. Much of that money goes to the states in the form of grants.”
“Virginia and Maryland, which depend heavily on federal spending, will take a hit, as will states with a strong military presence, like Hawaii… But even without this kind of spillover effect…the looming sequester cuts will slow the economy at a time when it’s already weak… the cuts could reduce economic activity by anywhere from 0.7 percent to 1 percent.”