Defense Biz Ignores Pending Cuts—A Case Of Denial? -- David Francis, The Fiscal Times
Wall Street and the rest of the country woke up yesterday to the surprising news that the U.S. Gross Domestic Product had contracted in the fourth quarter of 2012, falling by 0.1 percent. The news was especially disappointing in light of analysts’ expectations of 1.1 percent growth. It was also the first time GDP growth was negative since 2009.
The drop was attributed to a 22 percent drop in defense spending in the fourth quarter, shaving 1.28 percentage points from GDP. What’s alarming about this decrease is that it happened before the more than $50 billion in sequestration cuts, set to take effect in March.
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My Comment: They and everyone else are in denial on what will be the inevitable impact of high deficits and unsustainable debt on their businesses and personal lives.