‘Sequester’ threat is taking a toll
February 06, 2013 12:19 AM | 2027 views | 3 3 comments | 3 3 recommendations | email to a friend | print
In August 2011, the White House and Congress, faced with blundering into a default on U.S. debt, agreed to a budget deal that was, by design, so bad that the lawmakers believed they would never have to live up to it.

Instead, a bipartisan “supercommittee” would supersede the terms of the Budget Control Act by coming up with a long-term deficit reduction plan that both parties could agree on and the White House live with.

If the supercommittee failed — as it did — the federal budget for this year would be required to take an across-the-board cut of around $85 billion. The cuts would continue for 10 years, until $1.2 trillion had been gouged from federal spending.

The cuts, known as a sequester, were supposed to take effect Jan. 1, the dread “fiscal cliff” of recent memory, but at the last minute Congress postponed the moment of reckoning until March 1.

Here it is, the first week in February, and Congress seems to be sleepwalking toward that deadline. The timeframe is even tighter than it seems because the House plans to work only 11 days this month.

Senate Majority Leader Harry Reid, (D-Nev.) appeared to up the ante over the weekend when he said Democrats would demand additional revenues — either through tax hikes or loophole closings — as the price of averting the mandatory cuts. The Republicans felt they did their share last month by agreeing to let taxes rise on some upper-income earners. Now, they rightly want to see spending cuts in return.

Some House Republicans now favor letting the sequester take place temporarily to shock Congress into taking federal spending seriously.

Economic analysts disagree about the specific effects of a sequester, but they agree the total effect would be bad. The Associated Press summed up the prevailing view that the deadlock “has the potential to slam the economy, produce sweeping furloughs and layoffs at federal agencies and threaten hundreds of thousands of private-sector jobs.”

The Pentagon would bear the brunt of the cuts — about $43 billion this year, an amount that senior officers say would hollow out the military. Defense Secretary Leon Panetta said if Congress allowed the cuts to go through, it would be “a shameful, irresponsible act.” And while there’s no question that there is Pentagon spending that can and should be cut, there’s no question that Lockheed Martin, and the company’s plant in Marietta, likely would bear a disproportionate share of those cuts.

Moreover, the size and capabilities of our military should be determined based on need and potential threats, not solely by politicians.

March 1 isn’t that far off and Congress isn’t above giving itself another postponement. But the weary American public, including people whose jobs are at stake, generally would appreciate it if Congress showed some sense of seriousness about the problem.
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John Galt
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February 06, 2013
I am all for the sequestration. The only alternative is to raise taxes and decrease spending. A non-starter for me!

Iceland let it banks fail and it's economy is doing better than ours now, so let's let this sequester happen and quit buying into all the whining by those folks who benefit most from our hard-earned tax dollars.
Handy Dan
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February 06, 2013
There was a jobs bloodbath at Home Depot the last weeks, and expected at other larger Cobb employers as well.

Those who do not see a correlation between Obama's policies and their job loss amaze me. They just don't get it. Things are still getting worse, and we're kidding ourselves if we believe those who lie about the economy.
Deadwood2
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February 12, 2013
I suspect your impression of bloodbath is just getting rid of the deadwood!
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