Sequester 2013 explained: Obama inflates fiscal danger of budget cuts
Sequester crisis? The sequester deadline has passed and the American economy lives on. Did President Barack Obama exaggerate the sequester’s impact in his fight with Republicans to agree to tax increases to reduce the budget deficit?
In the lead up to a March 1 deadline, President Barack Obama portrayed the budget sequester as an economic doomsday for America. Administration officials warned of how cuts might impact the TSA. They said slashes to the FAA budget would mean fewer air traffic controllers. Officials even warned a plague might threaten American crops.
But the sequester deadline has passed and the American economy lives on. Did Obama exaggerate the sequester’s impact? The sequester amounts to $85 billion in cuts out of total spending amounting to $3.6 trillion. In other words, we’re talking about just 2.3% of the government’s total fiscal budget and 0.5% of America’s $16 trillion economy. Half the cuts come from military spending
which is in line with historic expectations as the US winds down two wars.
Is a 2.3% spending cut really too much for Obama? After all, most Americans already tightened their belts by 2% after the payroll tax holiday ended in January.