Sequester Cuts Could Hurt Boston Economy

Boston sequester cuts could hurt a recovering economy and Boston Mayor Thomas Menino called on members of Congress to return to negotiations over the $85 billion in automatic budget cuts that went into effect last Friday.

When Sequester Will Affect The Greater Boston Area

Boston Sequester Cuts Could HurtMenino said city-employed workers would start losing their jobs in about two weeks if Congress does not take action on the sequester.

The mayor estimated that Boston stands to lose several millions of dollars in the city’s budget. He said it would affect research, housing assistance, and public health initiatives.

“They’re real things. They’re not some rhetoric by the elected officials in Washington. These are real people that get affected by the inaction of our Congress,” Menino said.

He urged members of Congress to reach a deal.

“This hurts every American in this country. So it’s time for action. Stop the posturing. Let’s get down to business.”

A recent analysis offers “cautious optimism” that the Massachusetts economy will continue to grow modestly in the coming months, despite the threat posed by the automatic federal spending cuts.

The editorial board of MassBenchmarks, a journal published by the Donahue Institute at UMass, forecasts a rebound in exports from the state now that the economies of two major trading partners — Europe and China — have begun to stabilize.

The economists also cite the improving real estate market and an unemployment rate that remains below the national average. They say the state has experienced a “reasonably healthy” recovery.

Just how the sequester may affect Boston Area real estate is still unclear, but we’ll keep you posted right here on our website as time goes on and talks continue between Congress and the White House.

In the meantime, while sequester news continues on, start your search for Greater Boston Area real estate here.

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