Sequestration is Here!
It is time to put aside the hysteria and look at what sequestration really is, since several myths have dominated the debate over the so-called sequestration.
What is sequestration?
Sequestration or sequester is a term used to describe blunt and indiscriminate federal budget cuts that come to around 1.2 to 1.5 trillion dollars over the next 10 years.
Where did it come from?
The concept of the sequester came into being along with the super committee after the contentious debt ceiling deal of 2011. President Obama assigned the super committee, which consisted of Democrats and Republicans in the House and Senate, to come to an agreement on a better cost saving solution to avoid sequestration. However, the super committee failed.
What will be cut?
Nothing. The current debate about the sequestration and the “across the board cuts” that will devastate the world is ridiculous considering the sequester doesn’t cut federal spending at all. Rather, it is a modest growth reduction in the rate of spending by the federal government.
Moreover, there are no “across the board” cuts because entitlements are entirely exempt from sequestration. By leaving entitlements off the table, the sequestration cuts disproportionately target programs that aren’t the long-term drivers of our debt.
What you need to know about Sequestration:
The truth is sequestration is actually working—it is doing exactly what it was designed to do: cut spending when Washington simply doesn’t have the will. It is cutting from defense and from domestic spending, which neither side is willing to touch.
The bottom line is the government has a spending problem—not a revenue problem. Automatic spending cuts will hurt, but the truth is there is no way to correct Washington spending without paying.