Strategic Consulting Services Sees Government Economic Policy As A Threat To Personal Finance

August 12, 2013 (PRLEAP.COM) Business News
New York August 12, 2013 Strategic Consulting Services (www.strategiccs.org), a New York firm providing client-focused financial consulting, echoes warning from regulators and media for lawmakers to take action on important economic policy. With the 2014 budget deadline drawing closer, the debt ceiling and automatic budget cuts threaten to severely impact the middle class.

The 2013 budget sequestration from the Budget Control Act of 2011 (BCA) combined with Congressional policy fights have created an atmosphere of apprehension. Even as the deficit has been reduced this year through the sequestration, the cuts will continue unless Congress addresses the national debt ceiling and passes a 2014 budget. Both the House and Senate have passed individual budgets, however the two plans for next year are $91 billion apart with no signs of reconciliation before the September 30 deadline.

Addressing the problem in a speech at Harvard University, Director of the Congressional Budget Office (CBO) Doug Elmendorf said, "Putting the debt on a sustainable path will ultimately require increases in taxes or cuts in government benefits or services for people who consider themselves to be in the middle class." Continued cuts would impact Social Security, Medicare, Unemployment, and projections from the CBO indicate the automatic cuts will slow the U.S. economy by 0.6 percent this year with a loss of 750,000 jobs. "Besides having adverse effects on jobs and incomes, a slower recovery would lead to less actual deficit reduction in the short run," said Federal Reserve Chairman Federal Reserve Chairman Ben Bernanke.

In June, businesses nationally added 188,000 jobs, up from 134,000 jobs in May and better than anticipated for the month. While the Bureau of Labor Statistics reports June 2013 unemployment at 7.6 percent, this number only represents the definition of "unemployed" in America those without work and actively seeking work. After considering the retired, self-employed, students, and inactive job seekers, the employment rate (the percent of adults with a job) has not moved much in years. According to the U.S. Bureau of Labor Statistics, about 58.6% of the civilian population over age 16 had a job as of April. Companies creating jobs are doing so at the pace of population growth, not enough to account for jobs lost since the recession.

"Americans are already feeling the squeeze of recession, housing bubble, and the 2013 sequestration budget cuts," said Ben Kittle, Senior Financial Consultant at Strategic Consulting Services. "If lawmakers don't find compromise and address important policies in the next two months, the impact will be painful for the average American already stressed over credit cards and keeping a roof over their head while juggling multiple jobs."

About Strategic Consulting Services
Strategic Consulting Services is a financial services firm with teams specialized in Debt Management, Mortgages and Business Services. With a comprehensive client-focused approach, the Company provides assessments looking beyond immediate financial issues to help clients build greater financial strength with smart habits and choices. Since 2007, Strategic Consulting Services has helped individuals and small businesses create savings plans, reduce debt, and make wiser spending choices. For more information visit www.strategiccs.org.