Doom Scenarios for U.S. Budget Cuts May Be Overplayed

[Draggingtree]

Reuters:

Doom Scenarios for U.S. Budget Cuts May Be Overplayed

By David Lawder

WASHINGTON | Thu Feb 14, 2013 9:08pm EST

 

(Reuters)- Hundreds of thousands of people made homeless, long waits at airports and criminals going unpunished.

 

Those were among the dire warnings from the Obama administration on Thursday of the consequences of automatic public spending cuts that are due to kick in next month.

 

While the measures do indeed threaten jobs and the economic recovery, experts say government agencies are overplaying the effect of the $85 billion "sequestration" cuts to jolt lawmakers into halting them.

 

Deputy Defense Secretary Ashton Carter told a Senate Appropriations Committee hearing that U.S. military readiness would be eroded