Economists Say Government Hurts Economy With Policy Uncertainty

Businesses stay on the sidelines rather than risk a shifting environment

MADISON — Leave it to Drs. Congress and Obama to prescribe political rat poison to an ailing U.S economy — an economy made sicker by political uncertainty, economists say.

With the clock ticking on automatic budget cuts, President Obama and fellow Democrats have painted the bleakest sky-is-falling picture. On Monday, looking to rally support for his plan to stave off another politically imposed fiscal calamity, Obama blanketed national and state media with dire warnings of the impacts of federal sequestration.

Wisconsin would face tens of millions of dollars in lost federal money, hitting everything from education for children with disabilities to clean air and water to military preparedness.  The administration asserts about 3,000 civilian Department of Defense employees in Wisconsin would face furlough days, saving the federal government about $12.4 million.