Monday, February 18, 2013

Sequester Cuts and the Federal Budget

The US government spends about $3,600 billion a year. The sequester, which is supposed to start on Mar 1, is supposed to cut $85 billion out of that amount. So, it is less than 2.4% of the total outlays. This means that 97.6% of the expenditures can be done as planned.

What is the big deal about the sequester given its marginal impact?

It is mystifying to see that the law that instated the sequester (i.e. it was passed by the Congress and signed by the president) gets to be revised so fast when there are so many other laws that are more deserving of the legislature's attention.

'Surviving from fake crisis to fake crisis', this seems to be the governance motto of this political age.

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