08-22-2012, 09:36 PM
The Obama recession is on the way if it has not already arrived.
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Quote:[COLOR="Blue"]Failure to reach budget agreement could drive U.S. into recession, CBO says[/INDENT]
WASHINGTON -- A new recession is likely if a stalemate over tax and spending cuts continues between Democrats and Republicans, according to dire projections by the nonpartisan Congressional Budget Office on one of this year's defining campaign issues.
In its annual summertime report, the budget office said Wednesday that letting decade-old tax cuts expire and sweeping spending cuts occur in January -- which will happen without congressional action -- "would lead to economic conditions in 2013 that will probably be considered a recession."
If that happened, the economy would contract by 0.5 percent -- a gloomier projection than the budget office made earlier this year when it envisioned slight growth under that scenario. Unemployment would rise to around 9 percent by late next year if the standoff persists, the analysts said, with budget office Director Douglas Elmendorf telling reporters that failing to resolve it would cost 2 million jobs.
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