States Show Concern about Automatic Budget Cuts Effects

Every where you look, the politicians and economists are talking about how their own state and/or city will be affected by the automatic budget cuts set to begin in March, 2013.  Indeed, every state and territory has some to reason worry.  The purse strings may not be totally cut, but they will be shortened.

This isn’t the first time sequestering happened.

In 2003 the military came to a complete stop unless a particular unit was deployed to action.  Training exercises ceased.  Funding for repairs stopped.  Indeed, this process was first described and put into effect in 1985 as a means to enforce budget constraints when congress failed to do its job.  Consider this from the CRS Report for Congress, March 8, 2004:

“During the period encompassing FY1986-2002, the budgetary decisions of
Congress and the President were guided in part by specific goals in statute enforced by
a process known as sequestration. The statutory goals initially took the form of deficit
targets, but later were changed to limits on discretionary spending (first effective for
FY1991) and a “pay-as-you-go” requirement for direct spending and revenue legislation
(first effective for FY1992). Five sequesters were triggered during years in which
Congress and the President did not adhere to these statutory goals, three under the deficit
targets and two under the discretionary spending limits. No sequester occurred,
however, after FY1991.

In many of the years since FY1991, Congress and the President were able to avoid
a sequester by ensuring that it did not enact spending or revenue legislation in violation
of the statutory goals. At times, Congress and the President had to take advantage of
flexibility in the procedures, such as the ability to designate certain spending as
“emergency requirements,” in order to achieve this outcome. In other instances,
however, Congress and the President prevented a sequester that otherwise would have
occurred by enacting into law provisions that intervened in the normal operation of the
process.”

The point is that Congress anticipated not doing its job in 1985 for which they created a plan by which they could forever blame for the resulting sequestering.

Now, the budget cuts won’t be the “fault” of congress.  Instead, they will say they can’t help it when laws take effect.  Members of congress can still sit in their offices with a smug little smile and blame the members of the other parties for not agreeing with them.  Neither party wants to budget.  Both parties are willing to let the sequester happen.  They did it before and will do it again.  After all, it isn’t their fault, is it?

Blame?  The Democratic party, starting with President Obama, flat out blames everything on the Republican party.  The “list” posted on the White House website consists of 52 documents, one for each state or territory.  Paragraph three of each and every document says:

“Unfortunately, many Republicans in Congress refuse to ask the wealthy to pay a little more by closing tax loopholes so that we can protect investments that are helping grow our economy and keep our country safe. By not asking the wealthy to pay a little more, Republicans are forcing our children, seniors, troops, military families and the entire middle class to bear the burden of deficit reduction. The President is determined to cut spending and reduce the deficit in a balanced way, but he won’t stick the middle class with the bill. The President is willing to compromise, but on behalf the middle class he cannot accept a deal that undercuts their economic security.”

Seriously?  Does President Obama expect us to believe 100% of the fault lies with one party?  The stark reality is that Republicans, Democrats and President Obama are all to blame.  They have created amongst themselves an environment that in any other work place could be called unfriendly at best and hostile at worst.  It didn’t just happen during this presidency.  It has happened more than once.  It seems when people get elected to the highest offices in the land, they become difficult personalities.  Working with them has to be a nightmare.

How does all this affect Preppers?  Tune in tomorrow for a run down of how fully prepared Preppers will be affected.

 

References:

The White House List

CRS Report for Congress

“How Automatic Budget Cuts Could Affect Minnesota.” The Journal. N.p., n.d. Web. 25 Feb. 2013.

“Automatic Budget Cuts Find Few Fans.” Casper Star-Tribune Online. N.p., 24 Feb. 2013. Web. 25 Feb. 2013.

“A Look at Automatic Budget Cuts in Florida.” Atlanta News, Sports, Atlanta Weather, Business News. N.p., n.d. Web. 25 Feb. 2013.

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What’s This Sequestration Stuff: A Two Minute Primer

by Rod R.

1. Summer of 2011 the President and some in Congress wanted to increase the debt limit despite the fact that we are massively, dangerously in debt and federal government spending is out of control.

2. In exchange for the increase, a promise was made to cut spending by 1.2 – 1.5 trillion over ten years. A drop in the proverbial bucket.

3. To ensure that the cuts would actually happen, a penalty was imposed that would be equally onerous to both Democrats and Republicans IF the cuts didn’t happen. That penalty – also called the sequestration – was automatic cuts of 1.2 trillion to defense and domestic budgets over 10 years starting 2013. Remember, those cuts were supposed to be so scary that Congress would surely come up with their own cuts.

4. A committee was appointed to find the cuts. They didn’t.

5. After a year and a half to find and agree on the cuts, the cuts still didn’t happen. Shocker.

6. Now the automatic sequestration cuts are scheduled to begin in March.

7. Rather than dealing with the real problem – spending – the Dems and the GOP are pointing fingers at each other. Yet another shocker.

8. Even IF the cuts were made on time to avoid the sequestration – and they won’t be – they would not be significant enough to even come close to getting us out of a long-term debt crisis that will do irreparable damage to our country.

9. Assuming Washington allows the sequestration cuts to begin in March, there is no reason to believe that actual net cuts to spending will take place over ten years or that the deficit will shrink significantly or that the debt as a % of GDP will ever stop growing. That’s a very bad thing. The results will not be pretty.

10. Lest we cast all the blame on Washington “leadership” let’s remember who put them there – We The People. And unless We The People decide to put fiscally responsible leaders in Washington we will continue to whistle our way through the graveyard and eventually bury ourselves.

**This editorial was written by a guest writer, Rod R.  referring to events detailed in This is Why We Prepare.**