Rapid Fire Jan. 31, 2013: Feds Uncertain Why They’re Spending Less
- Alan Krueger, Chairman of the Council of Economic Advisers (to the White House), on the reason why US GDP contracted by 0.1% in Q4 2012:
“Federal defense purchases declined at an annual rate of 22.2 percent in the fourth quarter of 2012, the largest quarterly decline in 40 years. A likely explanation for the sharp decline in Federal defense spending is uncertainty concerning the automatic spending cuts that were scheduled to take effect in January.”
Emphasis on “likely” is ours: you would think advisers to the executive branch of the federal government would know for sure why it is spending less in response to a budget situation that it co-authored with Congress.
- Senator Hagel’s confirmation hearing with the Senate’s Armed Services Committee is unfolding today, 9:30am-noon ET. In his opening statement, new Ranking Member Jim Inhofe (R-OK) confirmed that he thought Hagel was “the wrong person” for what Inhofe characterized as a record of appeasement of the United States’ enemies. C-Span video.