Posturing on Sequestration

by Ryan on February 20, 2013

in Economy,Election 2012,Politics

In August 2011, our leaders in Washington decided to kick the proverbial can down the road in order to not deal with our economic situation until after the November election.  The debt limit, the Bush tax rates, and potentially devastating spending cuts were all left on the table until that time.  How very brave of them all.

Well, here we are.  March 1 is where the can now sits.

Now that it’s time to deal with our economic mess President Obama is trying to set up that can one more time while playing politics by portending doom for all!  Speaker Boehner points out that the devastating spending cuts, known as “sequestration,” were Obama’s idea in the first place, and unless Obama has ideas for alternative spending cuts, the “cleaver” will fall.  In sum, Boehner see leverage on spending; Obama is coming to realize that he needs to deal.

The truth is that slashing $85 billion in spending this year is equivalent to about 0.5% of our GDP and less than 10% of this year’s deficit.  It’s a joke to hyperventilate — Boehner even believes that while it’s a tiny number by DC standards, it will be invasive to defense nonetheless.  The hyperbole from Obama signals to me that he’s concerned.  Congress isn’t — they’re on vacation.

So, we have just over a week to let this dance play out. I hope the GOP stays strong and doesn’t budge (for once).  It’s Obama’s economy — let him own it.

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