Thursday, July 19, 2012

Economy - #4054 - Study: 9% Unemployment if Congress Doesn't Stop Mandatory Cuts As a Result of Budget Control Act's Sequestration - Hot Air (2) Sessions: Food Stamp Programs Exploding in Costs, Size - Hot Air (3) Worst Drought Since 1950's in Continental U.S. - Washington Post

The congressional Super Committee is long gone, but the consequences of its failure will be felt by millions of Americans unless Congress addresses mandatory cuts that take effect Jan. 2, 2013. A new study released today by economist Stephen S. Fuller of George Mason University and the Aerospace Industries Association estimates that 2.14 million U.S. jobs will disappear as a result of the Budget Control Act’s sequestration mandate. That would push the nation’s unemployment rate above 9 percent. Automatic cuts totaling $1.2 trillion will hit the defense industry particularly hard. Defense-related jobs makes up about half of the lost jobs, according to the study. The report estimates losses for other sectors of the economy as well: 48,059 jobs in healthcare, 98,953 in construction, 473,250 in manufacturing. California, Virginia and Texas will fare worst.The unemployment rate will climb above 9 percent, pushing the economy toward recession and reducing projected growth in 2013 by two-thirds. An already weak economy will be undercut as the paychecks of thousands of workers across the economy will be affected from teachers, nurses, construction workers to key federal employees such as border patrol and FBI agents, food inspectors and others. The first year of cuts will result in a $215 billion drop in America’s GDP. The overall U.S. workforce also faces a $109.4 billion decrease personal earnings. See chart, read more......

Sessions: Food Stamp Programs Exploding in Costs, Size - When food stamps were first expanded nationally in the 1970s, just 1 in 50 Americans participated; today the figure is almost 1 in 7. The program has doubled in size since 2008 and quadrupled since 2001. Food stamps are one of nearly 80 means-tested federal welfare programs, including 17 for nutritional support. Collectively, these programs cost $700 billion annually, plus $200 billion in state contributions. From 2001 to 2006 the food stamp budget doubled, even as unemployment remained around five percent. Food stamps make up 80 percent of the current farm bill, costing $770 billion over the next 10 years. Food stamp spending is projected to remain permanently and significantly above pre-recession levels. Were food stamp spending returned to pre-recession (2007) levels, and increased at the rate of inflation, it would produce 10-year savings of $340 billion. The current farm bill calls for only $4 billion in savings. Read more..........


Extreme Drought Since 1950's in Continental U.S. - Washington Post - It’s been more than 50 years since a drought this extensive has afflicted the Lower 48 states. That’s the conclusion of NOAA’s latest report on drought, released today. Through the end of June, some 56 percent of the continental U.S. was designated in some form of drought, the largest percentage since December, 1956. “... indicators suggest that the 2012 drought is similar to the 1950s drought in extent, pattern, and intensity, although not in duration,” the report said.  Read more.......

Related Articles:
(1) The Social Security Trust Fund Will Start Going Bankrupt in 2013 - Hot Air......
(2) Extreme Drought Hits Much of U.S., Ranches Sell Herds as Feed Costs Skyrocket - Townhall.....

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