Ace of Spades HQ

May 30, 2013

Shocking! Sequester Wasn't The End Of The World!
— DrewM

Unpossible! If the government spends a tiny bit less we were told there'd be riots and DC/NoVa residents would have to resort to cannibalism. Apparently not.

In the months since the automatic federal spending cuts known as the sequester took effect, the Washington area has added 40,000 jobs. Income-tax receipts have surged in Virginia, beating expectations. Few government contractors have laid off workers.
...
Â“The surprise is that the economy is as good as it is,Â” said Stephen S. Fuller, the economist who directs the Center for Regional Analysis at George Mason University. Â“WeÂ’ve done better than I expected.Â”
In January, Fuller predicted that the sequester, if enacted, would be an Â“end-of-the-world kind of hitÂ” to the regional economy. He wrote an analysis of the cuts in March concluding they would kill more than 325,000 jobs in Virginia, the District and Maryland combined.
That estimate included both direct and indirect effects Â— that is, layoffs not just among federal workers and contractors, but also the workers, such as waiters or car salespeople, whose jobs depend on spending from federal paychecks.

So what's the lesson to be learned? Cut MOAR!

I can't say I'm surprised that the economic impact on the DC area hasn't been greater but I am disappointed. I think it's very unhealthy for the capital to be protected from the economic realities of the country as a whole.

Posted by: DrewM at 07:41 AM | Comments (66)
Post contains 246 words, total size 2 kb.

1 Sequester? I barely even knew her!

Posted by: Henny Youngman at May 30, 2013 07:43 AM (Hx5uv)

2 I interpret the tone of this to be "just imagine the utopia of equality and prosperity if only they would just give Obama his way."

Posted by: WalrusRex at May 30, 2013 07:45 AM (Hx5uv)

3 Reuters called it 'austerity' today.

Posted by: SpongeBob Saget at May 30, 2013 07:46 AM (epxV4)

4 Meanwhile in April... Instead, the number of Americans in the labor force Â— those who have a job or are looking for one Â— fell by nearly half a million people from February to March, the government said Friday. And the percentage of working-age adults in the labor force Â— what's called the participation rate Â— fell to 63.3 percent last month. It's the lowest such figure since May 1979. http://is.gd/xLHtVq Potemkin economy.

Posted by: George Orwell what knows you never wear white shoes after Labor Day at May 30, 2013 07:46 AM (xw77v)

5 "Economics is extremely useful as a form of employment for economists." - Stuff Galbraith Said

Posted by: MixtNuts at May 30, 2013 07:46 AM (/3KtX)

6 "...concluding they would kill more than 325,000 jobs in Virginia, the District and Maryland combined..."

And yet, DC has an unemployment rate of 5%.

Posted by: PAgirlinNC at May 30, 2013 07:47 AM (LMKjz)

7 On one of the FBN shows last night, Cavuto (?) was reporting that furloughed workers are collecting unemployment benefits.

Posted by: Tami[/i][/b][/u][/s] at May 30, 2013 07:47 AM (X6akg)

8 So you're saying that Obama was wrong about the sequester

Posted by: Draco Malfoy at May 30, 2013 07:47 AM (e8kgV)

9 OT: Former WWE wrestler Kane is considering challenging Lamar Alexander for the senate from Tennessee! Tea party is supposedly supporting him! Woohoo! Plus, dude is seven feet tall. Send him to Washington= Hulk Smash!

Posted by: Jmel at May 30, 2013 07:47 AM (9tSXa)

10 Embrace the horror of the sequester ... do more

Posted by: Draco Malfoy at May 30, 2013 07:47 AM (e8kgV)

FBN shows last night, Cavuto (?) was reporting that furloughed workers are collecting unemployment benefits.

Stimulus!

Posted by: Nancy Pelosi at May 30, 2013 07:47 AM (EgLEt)

12 There are so many little sinecures, boondoggles, white elephants, payoff agencies, invented positions, and dummy agencies that just cutting those would save a goodly amount of money and annoy Washington teat-suckers to boot. Win-win.

Posted by: joncelli at May 30, 2013 07:48 AM (RD7QR)

13 if it weren't for the sequester, unemployment could have been down to 4 percent and high speed rail could have already connected NYC to Spokane. Also, Joe Biden could have been the man to introduce the Martians to the joys of cooking with library paste and Skittles. You should be ashamed of yourself for looking like Popeye.

Posted by: mallfly, at May 30, 2013 07:49 AM (bJm7W)

14 If sequester cut Obamaphones, it would be more difficult to arrange drug deals.

Posted by: President Choom at May 30, 2013 07:49 AM (nsg2T)

15 Potemkin economy

The underground economy has doubled since Obama took office. Up from ~$1T/yr to ~$2T/yr.

Posted by: @PurpAv[/i][/b][/u][/s] at May 30, 2013 07:49 AM (giblS)

16 ABC reporting Letter to President Obama has tested positive for ricin.

Posted by: USA at May 30, 2013 07:50 AM (VIaw0)

Recession? What recession?

signed, Everyone Within a 30-mile Radius of DC.

Posted by: BackwardsBoy, who did not vote for this shit at May 30, 2013 07:51 AM (0HooB)

18 this just in: a letter addressed to Chris Christie tested positive for gravy.

Posted by: mallfly, at May 30, 2013 07:51 AM (bJm7W)

19 Remember, the federal government is spending more this year than last year. The sequester is and always was a joke.

Posted by: buzzion at May 30, 2013 07:51 AM (LI48c)

20 Unpossible! If the government spends a tiny bit less we were told there'd be riots and DC/NoVa residents would have to resort to cannibalism. Apparently not. --- Tell me where the problem would be if this had happened.

Posted by: Brandon In Baton Rouge at May 30, 2013 07:51 AM (zA7Zp)

21 ABC reporting Letter to President Obama has tested positive for ricin.

Reichstag, paging Mr. Reichstag...

...your fire is waiting for you at gate number 3.

Posted by: @PurpAv[/i][/b][/u][/s] at May 30, 2013 07:52 AM (giblS)

22 15 Potemkin economy The underground economy has doubled since Obama took office. Up from ~$1T/yr to ~$2T/yr. I think this is the real story. It would be fascinating to read more about this. I would love to see stories about how Europeans have resorted to their underground economies, given their much longer stint under the boot of the EU.

Posted by: George Orwell what knows you never wear white shoes after Labor Day at May 30, 2013 07:52 AM (xw77v)

23 Three years, eight months (we hope). Well, the propaganda won't end, but it will be a different crew pulling the levers of government power (we hope). Could be the same ideology though so there's that.

Posted by: Skandia Recluse at May 30, 2013 07:52 AM (n/aXm)

24 18 this just in: a letter addressed to Chris Christie tested positive for gravy.

Posted by: mallfly, at May 30, 2013 11:51 AM (bJm7W)

Lap band blown.

Posted by: Tami[/i][/b][/u][/s] at May 30, 2013 07:52 AM (X6akg)

25 The Sequester ate my baby.

Posted by: A Woman Whose Baby Was Eaten By The Sequester at May 30, 2013 07:53 AM (MwpsQ)

26 Letter to President Obama has tested positive for ricin. White or brown ricin? Brown is much healthier. Michelle Obama recommends it.

Posted by: George Orwell what knows you never wear white shoes after Labor Day at May 30, 2013 07:53 AM (xw77v)

27 9 OT: Former WWE wrestler Kane is considering challenging Lamar Alexander for the senate from Tennessee! Tea party is supposedly supporting him! Woohoo! Plus, dude is seven feet tall. Send him to Washington= Hulk Smash! --- Everything I've ever heard about Glen Jacobs (Kane) is that he's smart and a pretty cool dude. It's not like I'd be sorry to see Alexander go, either.

Posted by: Brandon In Baton Rouge at May 30, 2013 07:53 AM (zA7Zp)

28 Lap band blown.

Posted by: Tami at May 30, 2013 11:52 AM (X6akg)

It's wafer thin...

Posted by: joncelli at May 30, 2013 07:54 AM (RD7QR)

29 Maybe we could balance the budget by eliminating 118 White House Easter egg rolls each year.

Posted by: Cicero (@cicero) at May 30, 2013 07:54 AM (MwpsQ)

30 this just in: a letter addressed to Chris Christie tested positive for gravy Gravy is ineffective without biscuits.

Posted by: George Orwell what knows you never wear white shoes after Labor Day at May 30, 2013 07:54 AM (xw77v)

31 I think this is the real story. It would be fascinating to read more about this.

I did a quick hit early morning appetizer post a while ago, but didn't dig real deep and flesh anything out. Its something that's been on my mind as a full blown front page daytime post.

Posted by: @PurpAv[/i][/b][/u][/s] at May 30, 2013 07:54 AM (giblS)

32 Now this is CBO, and the 'out years' are about as good as a weather report for two weeks in the future, but seems to show a favorable trend... WASHINGTON (AP) Â— A new government estimate says the budget deficit for the current year will come in well below what was projected just a few months ago. The Congressional Budget Office study predicts a 2013 budget deficit of $642 billion, more than $200 billion below its February estimate. CBO says higher tax revenues and better-than-expected bailout repayments by mortgage giants Fannie Mae and Freddie Mac are the key reasons for the improved outlook. The deficit picture is expected to continue to improve next year and beyond, with the 2015 deficit now projected at $378 billion, just 2.1 percent of the economy. Wake me up when Obama hits Bush numbers. Till then it's a yawn, but does prove cutting (or not increasing) government spending is not the end of the world.

Posted by: Regular Moron [/i] at May 30, 2013 07:54 AM (U2UQk)

Not for lack of trying by this administration to make it hurt as much as possible.

"Make it hurt."

That's a line that we should only hear in a pr0n flick, not from our own gubmint.

Posted by: BackwardsBoy, who did not vote for this shit at May 30, 2013 07:54 AM (0HooB)

34 29 Lap band blown. Posted by: Tami at May 30, 2013 11:52 AM (X6akg) It's wafer thin... --- Fetch a bucket for monsieur... *splat* ... und a hose.

Posted by: Brandon In Baton Rouge at May 30, 2013 07:54 AM (zA7Zp)

35 well, also remember that a proposal to cut annual growth in the school lunch program from 5.25 percent a year to 4.75 percent a year (this was in 1995) was described by the Dems as "slashing the school lunch program."

Posted by: mallfly, at May 30, 2013 07:54 AM (bJm7W)

36 What happened to the sequesters of yester year?

Posted by: phoenixgirl....in Maui phoenixgirl@phxazgrl at May 30, 2013 07:55 AM (tliFw)

37 Lap band blown..... & the gravy begat "gravy"

Posted by: phoenixgirl....in Maui phoenixgirl@phxazgrl at May 30, 2013 07:56 AM (tliFw)

38 The other day our local FM morning guys, Lewis and Floorwax were talking about the Air Force Academy not being allowed to have a flyover for graduation day, and Rick Lewis muttered, "so we can write huge checks to the Muslim Brotherhood but we can't have a flyover for our Air Force graduates?" I had suspected for a long time that he was "one of us." That kind of confirmed it. Floorwax, however is mentally challenged.

Posted by: Pug Mahon at May 30, 2013 07:56 AM (K+mtQ)

39 I'm surprised how hard it is to find stories about the underground economy in, for example, Europe. Given the massive overregulation they have, it's inconceivable that there are not a mountain of hijinks in this area.

Posted by: George Orwell what knows you never wear white shoes after Labor Day at May 30, 2013 07:56 AM (xw77v)

40 This just in!

"After decades of health-threatening obesity and futile dieting, [Rep. Jerrold] Nadler has taken a more aggressive course: During the Congressional recess in early August, he underwent stomach-reduction surgery at Mount Sinai Hospital in Manhattan. . . ."

This will reduce the House cafeteria cost enough to practically make up for the sequester.

Posted by: WalrusRex at May 30, 2013 07:56 AM (Hx5uv)

41 Reducing rates of growth has always been a "cut" in the Dem lexicon

Posted by: @PurpAv[/i][/b][/u][/s] at May 30, 2013 07:57 AM (giblS)

42 37 well, also remember that a proposal to cut annual growth in the school lunch program from 5.25 percent a year to 4.75 percent a year (this was in 1995) was described by the Dems as "slashing the school lunch program." --- Call me a hardheaded asshole, but those kinds of complaints should be grounds for slashing the budget back further each time they're repeated. If you're going to claim that the budget is "slashed", it might as well end up slashed.

Posted by: Brandon In Baton Rouge at May 30, 2013 07:57 AM (zA7Zp)

43 I'm surprised how hard it is to find stories about the underground economy in, for example, Europe

I read something some time ago saying its as high as 25% in some of the Balkan nations.

Posted by: @PurpAv[/i][/b][/u][/s] at May 30, 2013 07:58 AM (giblS)

44 Is there a Chanel Boutique in Washington, DC? Why yes there is. Those stores always show up where there is a lot of disposable income. Examples of other cities having Chanel Stores are Los Angeles, New York City, Chicago, and Houston.

Thirty years ago the Senators' wives wore ready-to-wear from Talbots. Now they are all seen in designer stuff, and I am not even discussing Michelle's extensive and overpriced wardrobe which she probably gets as gifts for providing free advertising, which is, I think, INCOME WHICH SHOULD BE REPORTED.

The sequester isn't even going to make a dent in their lifestyle.

Posted by: Miss Marple at May 30, 2013 07:58 AM (GoIUi)

45 Walrus Didn't nadler lose a lot of weight yrs ago? Did he pack it all back on?

Posted by: phoenixgirl....in Maui phoenixgirl@phxazgrl at May 30, 2013 07:59 AM (tliFw)

46 Posted by: George Orwell what knows you never wear white shoes after Labor Day

Ahem

http://tinyurl.com/pl7t2k

Posted by: Joe Willie at May 30, 2013 08:00 AM (2iU3x)

47 Last timer I saw Nadler on TV, he looked like he had just finished off every cream pie in Boston.

Posted by: WalrusRex at May 30, 2013 08:02 AM (Hx5uv)

48 I thought Nadler did that surgery several years ago...

anyway, according to Yahoo news:

"A drop in government spending dragged more on the U.S. economy than initially thought in the first three months of the year, a sign of increasing pain from Washington's austerity drive.

Another report on Thursday showed the number of new jobless claims rose last week, and together the data reinforced the view that the U.S. economy may be entering yet another soft patch.

Gross domestic product, a measure of the country's total economic output, expanded at a 2.4 percent annual rate during the first quarter, down a tenth of a point from an initial estimate, the Commerce Department said on Thursday. Analysts had forecast a 2.5 percent gain."

but...

"Washington has been tightening its belt for several years but ramped up austerity measures in 2013, hiking taxes in January and slashing the federal budget in March."

(there's that S word again...)

Posted by: mallfly, at May 30, 2013 08:02 AM (bJm7W)

49 Now Fox is changing their mind.....they will NOT attend DOJ meeting if it's off the record.

Posted by: Tami[/i][/b][/u][/s] at May 30, 2013 08:02 AM (X6akg)

50 yerah...

Nadler, as a Last Resort, Sheds Weight by Surgery
By RAYMOND HERNANDEZ
Published: November 16, 2002

If the usual rigors of serving in Congress were not enough, Representative Jerrold Nadler, a Manhattan Democrat, struggled for years with the personal torment of being so overweight that he could not make it up even a single flight of stairs to the second floor of the Capitol to vote on the House floor. He used the elevator instead.

''I can't tell you how many people -- complete strangers -- have come up to me and said, 'Congressman, you're doing a great job, and I want you to continue to be my congressman, so you have to lose weight,' '' he said in an interview. ''Imagine how that makes you feel.''

Now, after decades of health-threatening obesity and futile dieting, Mr. Nadler has taken a more aggressive course: During the Congressional recess in early August, he underwent stomach-reduction surgery at Mount Sinai Hospital in Manhattan, following in the steps of a small but rising number of overweight people, most recently (and famously) Al Roker, the weatherman for NBC's ''Today'' program.

Posted by: mallfly, at May 30, 2013 08:03 AM (bJm7W)

51 Fuller should be fired. He obviously let politics enter into his 'calculations' on how sequester would affect the economy.

Posted by: Schwalbe: The Me-262© at May 30, 2013 08:05 AM (UU0OF)

52 Nadler, as a Last Resort, Sheds Weight by Surgery By RAYMOND HERNANDEZ Published: November 16, 2002 Because getting some excercize and eating something decent once in a while is SOOOOO fucking difficult. I'm sick to death of these adult children who cannot properly feed themselves or get their fat asses off the couch once in a while. We had some lazy bitches in our office that got this surgery and we all had to pay for it while they were off recovering, with full pay, for a month each. Anyone who would rather be cut open than just fucking get some excercise and work out once in a while is just a big fucking overgrown child.

Posted by: BlueStateRebel at May 30, 2013 08:10 AM (7ObY1)

I think it's very unhealthy for the capital to be protected from the economic realities of the country as a whole.

I couldn't agree more, Drew. And, IMHO, the greatest impediment to DC feeling any economic realities is the current system, where they pass laws and get to ignore them. I think a conservative candidate who had, as one of his platform planks, "Make Washington obey their own laws!" would tap into a great deal of populist sentiment.

But, it being a very obvious vote-getter, it's a lock the GOP will ignore it.

Posted by: Mary Poppins' Practically Perfect Piercing at May 30, 2013 08:11 AM (zF6Iw)

No... BIG Picture folks...

The Government spends less, and the Economy does BETTER!!!

Pure Keynes vs. Hayek.... and Keynes goes down for an 8 count... but the Judges in the media and Washington IGNORE it.... again...

Posted by: Romeo13 at May 30, 2013 08:13 AM (lZBBB)

"Make Washington obey their own laws!" would tap into a great deal of populist sentiment.

But, it being a very obvious vote-getter, it's a lock the GOP will ignore it.

Posted by: Mary Poppins' Practically Perfect Piercing at May 30, 2013 12:11 PM (zF6Iw

Yep... being saying this for Years... EQUAL Protection, means EQUAL Enforcement....

Have you noticed that all the Mirrors are disappearing in Fast Food, and Gas Stations Bathrooms? (at least in California?).... WHY??? They came out with new Disabled guidelines, for mirrors, that make most of standard bathrooms not able to meet the Disabled mandate.... so they are just getting rid of mirrors for EVERYONE...

Government.... we're here to help...

Posted by: Romeo13 at May 30, 2013 08:16 AM (lZBBB)

56 Reichstag, paging Mr. Reichstag...

I thought he was going by the name "Kokesh" these days.

Posted by: Blanco Basura at May 30, 2013 08:17 AM (4WhSY)

57 futile dieting

Shocking that a liberal democrat is a gluttonous pig.

Just shocking

Posted by: wiserbud at May 30, 2013 08:18 AM (WCe8r)

58 47 --- "...Michelle's extensive and overpriced wardrobe which she probably gets as gifts for providing free advertising, which is, I think, INCOME WHICH SHOULD BE REPORTED." Posted by: Miss Marple at May 30, 2013 11:58 AM (GoIUi) -------------------------- The Attack-Nancy-Reagan laws clearly require the gift of clothes to be reported as income. Furthermore, just BORROWING clothes has to be reported to the extent of the NORMAL depreciation of the goods. By "normal" they mean what the used garment would cost if it had been worn by Mrs. Nobody. The depreciation on anything Michelle wears would be HUGE because she is an off-size woman. So even if she borrows her super-expensive duds, the gift amount is at least 75% of the retail price. Of course, this is all moot since the Obamas don't have to obey the law. The amount of money she spends on clothes is so staggering that I cannot believe she is forking over her own cash for a lot of it.

Posted by: Margarita DeVille at May 30, 2013 08:21 AM (C8mVl)

59 This info re: govt cuts and economic recovery would make a great campaign ad for every conservative candidate out there.

Posted by: jd at May 30, 2013 08:24 AM (MXyBs)

60 Obama's economy is looking better and better. House prices are up the Dow is up unemployment is down federal deficit below expected

Posted by: occam at May 30, 2013 08:25 AM (BrkDN)

61 Basically the story around here is furloughs, not layoffs. Most of my neighbors who work for the government have to take somewhere between 5-10 days, and few a bit more. I wouldn't sneeze at the lost pay, but it amounts to basically one less paycheck per year when you add it up, but otherwise everyone's getting a lot more three-day weekends. The main benefit to me is that traffic sure has been a bit lighter.
So yeah, not exactly a Lord of the Flies situation developing.

Posted by: Paul Zummo at May 30, 2013 08:26 AM (Ud5vq)

They've exported the sequester to elsewhere.

I'm staring the down the barrel of dipping into savings now that I'm out of work and wife gets an 11 day vacation spread out over 3 months.

Posted by: tsrblke at May 30, 2013 08:35 AM (GaqMa)

I would also note that this doesn't mean cut more.

Cut much much more. But do it smartly and don't let DC simply export their pain to the rest of the country to keep the booze flowing at the orgy.

Posted by: tsrblke at May 30, 2013 08:42 AM (GaqMa)

The Sequester didn't hurt the rest of the govt too badly but the worst is yet to come for the military. http://tinyurl.com/kzw5d44 Its amazing what our govt wil fund instead of our defense.

Ski

Posted by: Ski at May 30, 2013 09:55 AM (728Fx)

65 Pffft. DC is boomtown, USA.

Posted by: BayAreaHausFrau at May 30, 2013 11:44 AM (Gx5rY)

66 Of course there won't be much impact in Cashington D.C. , it will be spread out to the military. I am also facing loss of 11 days pay in 3 months.I am not rich, I make $45,000 per year. I work on a Navy base, and I personally know several people who work many hours per week beyond what they are paid for due to sequester. Not all government employees are lazy leeches.

Posted by: Sumdumguy at May 30, 2013 06:03 PM (tB0Ek)

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