UVA Dean: Sequestration More than Short-Term Pain - NBC29 WVIR Charlottesville, VA News, Sports and Weather

UVA Dean: Sequestration More than Short-Term Pain

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Across-the-board federal spending cuts of $85 billion are set to begin in just hours after lawmakers failed to reach a last-minute deficit reduction on Capitol Hill.

Now the burning question is: what's next?

Virginia is looking at potential major job losses, furloughs and lost economic activity if these cuts go through.

But Dean Robert Bruner with the Darden School of Business at the University of Virginia says these cuts mean much more than just some short-term pain. He says the cuts, and other unsuccessful efforts to reduce the nation's deficit, show that this is just the start of deeper challenges ahead.

According to Bruner, this could be the beginning of a long stretch of slower economic growth, which will change the way the government, firms and everyday consumers do business. That means spending less money, in a smarter way.

"The economic forces at work are so large and so impactful that it seems almost certain that for the rest of this decade we will endure an era of relatively low economic growth for the United States," Bruner said.

The "new normal," Bruner says, will results in slower job creation, less government spending and more careful investment. It also means consumers will have to more carefully monitor their personal spending. But despite what the imminent sequester seems to suggest, Bruner admits no one can predict the future.

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