Congress Budget Cuts Damage U.S. Economy Without Aiding Outlook

President Barack Obama and congressional Republicans have stumbled into an approach to deficit reduction that inflicts the pain of economic austerity without the gain of addressing the long-term budget gap. Automatic spending cuts that began March 1, combined with tax increases enacted earlier this year, will depress U.S. economic growth by about half in 2013, according to government projections. At the same time, the spending cuts leave untouched the popular retirement and health benefits that both Obama and Republican leaders agree are the main drivers of the deficit.