Few signs that the feared sequester has hurt job growth
That fact has many people changing their tune about the automatic budget cuts’ impact.
Mark Zandi, chief economist for Moody’s Analytics and a frequent market commentator, told The Hill in May that the “the impact will be noticeable this summer.” Following Friday’s release of the June jobs report, however, Zandi told CNBC, “I think it’s way too premature for the sequester [to be] having an impact,” and suggested that the president’s 2010 health care reforms, now being implemented, might be to blame for the weaker job growth.
The administration had warned of a number of specific ugly consequences of the automatic spending reductions, including everything from one-hour waits in airport security lines to 600,000 women and children losing food aid. The Washington Post, in a piece detailing the ways in which White House’s dire scenarios failed to materialize, reported that the White House was now walking back some of those claims.
“Congress took action that changed a number of things,” an administration official told the Post in explaining why the cuts didn’t cause the promised disaster.