Recession buzz growing, now, billionaire investor Mark Cuban has put out dire warning; here's what he said
Impact of Federal Budget Cuts
Cuban commented on the widespread implications of reductions in government expenditures, especially with regard to federal contractors laying off staff and cutting salaries, Fortune reported.
He wrote in a post that, «This is a bigger issue than people realize. Not just jobs lost. But their families losing benefits. Landlords losing tenants. Cities and towns losing revenue. This is how recessions start,» as quoted by Fortune. He claimed that «Ready Fire Aim is no way to govern,» as quoted in the report.
Disappointing Job Numbers
Cubon's warning comes after ADP's private-sector payroll survey showed that only 77,000 jobs were created in February, short of the forecast 148,000 and below January's 186,000 gain, according to Fortune.
Industries that depend significantly on government expenditure, such as education and healthcare services, recorded job losses of 28,000 posts, Fortune reported. Other industries that would be hit by US president Donald Trump's tariffs, such as trade, transportation, and utilities, also recorded a loss of 33,000 posts, the report added.
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