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Sequester: The Cut That Isn’t

2013 February 22
by robertnew

printing_moneyIn the State of the Union address this year, President Obama made the following statements:

“Over the last few years, both parties have worked together to reduce the deficit by more than $2.5 trillion – mostly through spending cuts, but also by raising tax rates on the wealthiest 1 percent of Americans. As a result, we are more than halfway towards the goal of $4 trillion in deficit reduction that economists say we need to stabilize our finances.

Now we need to finish the job. And the question is, how?

In 2011, Congress passed a law saying that if both parties couldn’t agree on a plan to reach our deficit goal, about a trillion dollars’ worth of budget cuts would automatically go into effect this year. These sudden, harsh, arbitrary cuts would jeopardize our military readiness. They’d devastate priorities like education, energy, and medical research. They would certainly slow our recovery, and cost us hundreds of thousands of jobs. That’s why Democrats, Republicans, business leaders, and economists have already said that these cuts, known here in Washington as “the sequester,” are a really bad idea.”

In his TEA Party response, Rand Paul pointed out:

“The President does a big “woe is me” over the $1.2 trillion sequester that he endorsed and signed into law. Some Republicans are joining him. Few people understand that the sequester doesn’t even cut any spending. It just slows the rate of growth. Even with the sequester, government will grow over $7 trillion over the next decade.

Only in Washington could an increase of $7 trillion in spending over a decade be called a cut.

So, what is the President’s answer? Over the past four years he has added over $6 trillion in new debt and may well do the same in a second term. What solutions does he offer? He takes entitlement reform off the table and seeks to squeeze more money out of the private sector.”

Over the next few weeks we are going to hear the rhetoric on the sequester ratchet up to an all new level. We should all remember that this sequester law was approved by both parties when it was written and the President was happy to sign his name to it.

Politicians love to tell us how cuts are going to affect teachers, firemen, police, and hospitals because that scares us. What should scare us our spiraling debt with no end in sight. Or the fact we are spending our kids and grandkids money. Money that even the ones who aren’t born yet hasn’t even earned is being frittered away in the name of “investment”. Investments should have a return, we are barreling toward a point of no return.

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