This could be a true bounce-back year for the economy, with the recovery really gathering steam. Housing, which has been such a drag on GDP for six years, is finally expected to add to GDP, by about 1%. Just as a downturn feeds on itself and takes us spiraling down, a definitive upturn would feed on itself and lift us up higher and faster. More consumer spending leading to more jobs, leading to more consumer spending and even more jobs.
The sequester looms on March 1, with the GOP saying they won’t raise taxes and will accept only spending cuts, and the Dems saying there must be a combination of cuts and taxes. Without an agreement, the automatic cuts will start draining billions of dollars a month from our economy.
And by the end of March, government funding under the continuing budget resolution will run out, and we face the possibility of a government shut down.
So we could quickly and needlessly slide back into recession.
It is ironic that as the private sector comes back, the government-hating GOP may use government power to depress the functioning of the free market and give the “invisible hand” a vicious slap.
But they believe they have to destroy our economy in order to save it.