Mass. businesses laud tentative US budget deal
The Boston Globe - 12/12/2013
The total amount of sequestration cuts in Massachusetts is hard to gauge, because spending reductions were often spread out geographically among a variety of contractors and subcontractors that did work for local companies but were not necessarily located here, budget specialists say.
But Alan Clayton-Matthews, an economist at Northeastern University, said he has no doubt that federal spending reductions hurt the Massachusetts economy, and he warned that the 2011 Budget Control Act agreed upon by the President and Congress still looms as a threat two years from now.
That 2011 deal called for a total of $1.2 trillion in deficit reduction over 10 years — a figure that has not changed under the Ryan-Murray budget accord.
“As long as sequester cuts are around [beyond 2015], we can expect a negative impact on the economy in the long term,” said Clayton-Matthews.