CHARLOTTESVILLE (CVILLE RIGHT NOW) – New data showing consumers slashing spending by the most since February 2021 even as incomes rose does not surprise University of Virginia Economist Ed Burton. He told Morning News one of the issues is the sweeping government job cuts. He says there seems to be an argument of extremes with some happy with drastic cuts, while others don’t believe the government workforce should be reduced at all.

“The government has way too much bloat, no question, but the more you come at it with a hacksaw you’re going to cut good limbs off the trees”, Burton said.

He says if 100-to-200-thousand federal employees lose their jobs, that’s pay that’s not going to be put into consumption goods and other things.

Burton says the second issue are the tariffs which he says will hurt everyone. He’s among many economists who says the tariff impositions are likely to push prices higher. In fact, companies have already made plans in response, and some made them just after the election.