🖤 Donations of all sizes power our public service journalism Give Now
6 degrees of sequestration

Rename the sequester: Suggestions

Kai Ryssdal Feb 22, 2013
HTML EMBED:
COPY
6 degrees of sequestration

Rename the sequester: Suggestions

Kai Ryssdal Feb 22, 2013
HTML EMBED:
COPY

What’s in a name? There’s got to be a better one for the ‘sequester’ cuts that are set to roll out beginning March 1, if Congress doesn’t act in time. Speaker of the House John Boehner is using “Obamaquester;” Marketplace listeners have their own lists going.

Names aside — how much of an impact will the sequester have on our economy?

“The fundamentals of the economy actually look pretty good…well, they would look good if it weren’t for the politicians,” said Fortune magazine’s Leigh Gallagher. “We were really kind of gaining a lot of momentum on this recovery — certainly if you look at the stock market, that’s a completely different story. But these budget cuts, I’ll call them, are not going to be good on top of the tax increase — the payroll tax increase had already had an impact,” she said. “I think the uncertainty…that’s going to impact everything.”

CNBC’s John Carney, though, said he believes everything will be fine. “The actual budget cuts only amount to around $44 billion; it’s not a lot of money,” he said. “So we can easily take it, even at the full number of $85 [billion], we could take that. Our economy is strong enough right now that it turns out that you know, maybe this whole — I won’t use the ‘S’ word, I’ll call it ‘March Madness’ — isn’t such a bad idea.”

Listen to the full audio above for more analysis on the sequester. The two also offered some good reading for the weekend ahead.

Leigh Gallagher’s picks:

And John Carney’s suggestions:

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.