The Obama White House reacted to the horrible news today that the economy is shrinking by blaming the decline on Hurricane Sandy and the defense spending cuts.
According to the “advance” estimate released by the Bureau of Economic Analysis today, real GDP edged down 0.1 percent at an annual rate in the fourth quarter of 2012, amid signs that Hurricane Sandy disrupted economic activity and Federal defense spending declined precipitously, likely due to uncertainty stemming from the sequester.
Of course, the sequester idea came from inside the Obama White House. The Politico reported, via GOP.com:
“In fact, the idea may have come in part from Obama’s current chief of staff, Jack Lew. The Washington Post’s Bob Woodward reported in his book ‘The Price of Politics’ that Lew, then-Office of Management and Budget director, and White House Legislative Affairs Director Rob Nabors broached the idea of a defense sequester as a threat to Republicans during negotiations over raising the debt ceiling.”