Monday, March 4, 2013

Austerity Layoffs on a Monday Morning

Some journalists are saying the U.S. economy won’t take an instant hit from the austerity budget that officially took effect Friday night, but it is important to note that very few economists are saying that. There is plenty of history that says that people change their plans at times like this. We can specifically expect the budgets at thousands of businesses that supply the federal government to change today, if that did not already happen over the weekend. When budgets change, staffing changes, and some of the layoffs will happen today too. The actual government layoffs will take weeks to occur, but businesses are free to move more quickly, and that is the effect we can look for this week. Of course, some austerity-budget layoffs have happened already, but others are just taking place now.