With NFL teams reporting for training camps (Who Dey?), it’s apropo the New York Times reported Tuesday that the leaders of the two houses tentatively agreed to a budget extension for federal spending through March, 2013 (“budget” is in quotes because the government doesn’t actually have a budget).
So I was wrong a few weeks ago in my blog… The can wasn’t kicked to December, it was instead punted to March. Or was it?
The Fiscal Cliff is still looming. This step was to avoid a government shutdown in October. Or more accurately this step was to avoid the debate about a government shutdown ahead of the elections. But this does nothing to resolve the automatic cuts and tax hikes that will come into play in January. Reuters frames this as “Washington took some tentative steps toward confronting its looming fiscal threats”. A step… Not really. A political punt… Yes.
On the glass half full side, this agreement (assuming it goes through congress) does introduce a level of certainty around government spending for the next six months or so… On the other hand it’s disappointing that this type of pooch kick is becoming the new normal.
I’m curious how you think your business (manufacturing or otherwise) may be impacted the next five months in anticipation of the potential sequestration… Is it business as usual, a minor distraction, or do you see it having a more significant effect?
Thanks… Jim ([email protected]). Follow EWI on Twitter @EWI_innovations or Like us on Facebook “EWIinnovation”