Washington, D.C. — Center for American Progress Economist Adam Hersh had the following reaction to the announcement of the fourth-quarter GDP numbers released this morning by the Bureau of Labor Statistics:
Today’s GDP numbers show the toll that political conflict over fiscal policy is taking on U.S. economic growth. The 0.1 percent economic contraction puts the United States on the precipice of recession. Our economy would certainly have grown at a faster rate last quarter were it not for political brinkmanship over the debt ceiling, and the risk of sharp fiscal contraction in the form of automatic “sequestration” budget cuts. That contraction is now unfolding, and we know what will happen if policymakers don’t work to scrap the sequester and eliminate the useless debt limit policy: We will have slower economic growth and job creation this year and in the future.
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Related resources from CAP:
- Next Round of Deficit Reduction Must Tackle Hidden Spending in the Tax Code by Seth Hanlon
- Revenue from the Fiscal Cliff Deal in Context by Michael Linden and Michael Ettlinger
- The Deficit Reduction We Have Achieved So Far by Michael Linden and Michael Ettlinger