Sequestration: Macro and Micro

Jared Bernstein and Joel FriedmanCBPP

2/27/13

Economic Backdrop: Sequestration Lets the Air Out of the Tires of an Already Wobbly Economic Bicycle

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Sequester (et al): Policy Headwinds Blowing Pretty Hard in Wrong Direction

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Do you need more proof that austerity is a bust?!!?

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Low (10th) Median (50th) High (90th)

2000 $396 $817 $1,813

2007 $391 $817 $1,847

2012 $382 $815 $1,901

2007-12 -2.3% -0.3% 2.9%

Other Headwinds: Gasoline, Real Earnings

Sources: GasBuddy, BLS7

Housing Tailwinds, Helped Along by the Only Policy Makers Doing Anything Helpful Right Now: the Federal Reserve

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