CBO: Reversing cuts would boost jobs, economy

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Associated Press

Posted on July 25, 2013 at 3:33 PM

Updated Thursday, Jul 25 at 4:02 PM

WASHINGTON (AP) — A new study says that reversing more than $100 billion in automatic spending cuts hitting the economy this year and next would boost the economy by 0.7 percent and increase employment by 900,000 jobs.

The Congressional Budget Office study is similar to prior estimates by the agency. The CBO figures are the agency's best estimate but the possible range of job growth is much wider, from 300,000 jobs to 1.6 million.

The report comes as President Barack Obama is redoubling his campaign against the automatic cuts, known as sequestration, which are causing furloughs among government workers and have been credited with slowing the economic recovery.

CBO said reversing the cuts would boost the economy in the short term, but hurt it in the longer term.

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