U.S. consumers have seen better days.
The expiration of the payroll tax holiday earlier this year has taken a 2% chunk out of weekly earnings – a big hit for lower and middle income Americans. AAA says the price of a gallon of regular gasoline has jumped 47 cents in one month, adding more downward pressure on consumers. And if Congress and the White House cannot find a way to stave off the $1 trillion in across-the-board spending cuts (also referred to as the “sequester”) that hits military and domestic programs before March 1, hundreds of thousands of workers – especially military contractors – could lose their jobs.
The Daily Ticker’s Aaron Task and Henry Blodget both agree that the sequester would adversely impact the U.S. economy, especially at a time when economic output remains weak. The economy contracted in the fourth-quarter of 2012 mainly because of reduced military spending. If the sequester takesRead More »from U.S. Consumers Hit By Payroll Tax Hike, Rising Gas Prices: Up Next, Govt. Austerity!