Alright everyone, after a long hiatus, I’m back and as lively as ever! The topic for discussion today is the Sequester. First thing really is, what the heck IS a sequester?
se.ques.ter. as a noun it means a sudden cut in government spending. As a verb, well it means to kidnap, I still think the verb tense of the word works better in our situation, but that’s just a personal preference.
The Sequester is, like it or not, Government made. Yea that’s right, a fabricated crisis put in place by our government. Ah democracy, ain’t it grand?! It all started with this law called ‘The Budget Control Act of 2011.” This pretty little devil demanded that the Government cut no less than 1 Trillion dollars from the federal deficit before January of this year. If the government failed to do this, the Sequester would take effect. The Sequester is a forced deficit reduction to the tune of 1.2 Trillion dollars, the first 100 or so Billion was to take effect January 2, 2013, but the government put in an extension along with the fiscal cliff aversion bill.
We all know of the failed “Super Committee”. The Committee’s job was to find a way to reduce the deficit in a balanced way, when they failed it seemed like the government just decided to sweep the problem under the rug, as is the norm. As a result we are stuck with the Sequestration cuts, which means bad things my friends, bad. Things.The money in the Sequestration cuts would come in two parts: half from Defense spending, and half from all other non exempt federal programs.
Being very realistic, this will hurt our already flailing economy in devastating fashion. How devastating you may ask? Devastating to the tune of 750,000 job losses over the next ten years as the cuts are fully implemented.
The saddest part of all this, it was really a threat the government put on itself. The idea was, cut spending, or we’re gonna do something that democrats and republicans will all hate. This cuts Defense spending, the area Republicans always put at the top of the list, and it cuts from social programs as well, the area Democrats put at the top of the list.
Do we need spending cuts? Abso-freaken-lutely, are these cuts right? Heck no. Fact is, we need a balanced approach to cutting this down, that means increase revenue (republicans just died) and spending cuts (democrats just died). Leaders are leaders to make the hard decisions, allowing these cuts to go through will be one of the worst mistakes in American History. Most projections have us falling back into recession if the cuts go into effect, and that is something we simply cannot afford to see.
In short, the clock is ticking. Less than one week from now we will see what happens. Whatever does happen, it’s not going to be pretty. Buckle up everyone, this could be one very bumpy ride.