• Alan Krueger, chairman of the president's Council of Economic Advisers, warns that consumer spending will drop if Congress and the White House fail to reach a deal on spending cuts and tax increases.
    Jewel Samad / AFP/Getty Images
    6:09pm Dec 05, 2012
    National National Economy Politics & Government

    Looming Spending Cuts Would Hit Hard All Over

    If Congress fails to reach an agreement on tax increases and spending cuts this year, it will mean sharp reductions in a broad swath of federal spending, from defense and Medicare to education and unemployment benefits. Economists say the cuts would be a serious setback for the economy as a whole.