Fully canceling sequestration at the beginning of August would likely add 900,000 jobs to the economy but could add up to as many as 1.6 million, according to a new analysis from the Congressional Budget Office. It would also likely increase GDP growth by 0.7 percent but could boost that rate by as much as 1.2 percent.
The CBO also warned that canceling the automatic, across-the-board spending cuts that went into effect in March would mean an increase in government spending of about $14 billion this year and $90 billion next year. Yet the current deficit projections have improved substantially in the past few years and the outlook is pretty good.
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