How Washington is Killing the Economy

Photo Credit: APThe latest round of fiscal drama has sputtered to a temporary close, but the routine crises have one clear victim: the U.S. economy, which is once again losing altitude. And for the third year in a row, Washington gets much of the blame.

There’s not much hope for a quick turnaround.

The most recent slowdown — highlighted by poor job growth, softening corporate earnings and decimated confidence — comes just as Republicans and Democrats prepare to square off in a fresh fight over the federal budget with another potential shutdown looming in January and a renewed debt ceiling crisis possible in February.

Washington’s drag on the economy now springs from a multiplying array of sources, including the constant threat of devastating fiscal crisis, the blunt nature of the sequester spending cuts, the troubled roll-out of Obamacare and the now deeply strained relations with key economic allies over clandestine surveillance allegations.

Taken together, Washington’s toxic politics and poorly executed policies have all but ensured that fourth quarter growth comes in soft after forecasters initially predicted a strong close to the year. And they mean that 2014, which initially looked like a possible breakout year for the U.S. economy, now seems like it will be a dreary rerun of 2013 featuring sluggish growth, modest job creation and stagnant wages.

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