New Sequestration View

A new Cato Institute study claims sequestration not only will not devastate the economy, but also could provide "a major boon" to the economy in the long term. Titled "Economic Effects of Reductions in Defense Outlays," the study argues that reducing military spending frees up resources that could be devoted to other priorities, eventually strengthening the economy. The study contends defense industry groups have been "scare-mongering" over sequestration and dismisses concerns over jobs that could be lost.