President’s Sequestration warnings are an Obamanation!
President Obama was for Sequestration before he was against it. Sequestration will result in federal spending cuts that Obama forced Republicans to put on the table before he would bargain with them on the debt ceiling, and now he is trying to blame the cuts on them.
According to the Washington Post Fact Check, White House national economic council director Gene Sperling proposed the idea of a compulsory trigger, calling it an automatic sequester.
House Majority Leader John Boehner was “nervous” about using it as a budget tool. However, Obama said it could be used to force tax reform. It would be an enforcement mechanism even if both sides disagreed on the composition of how to get to the cuts; it would lock in the cuts.
Obama even threatened to veto any bill that came to him that didn’t include these automatic sequester cuts in 2011.
President Barack Obama, who has since changed his mind because spending cuts are actually going to happen, today used the threat of cuts to first responders, surrounding himself with an entourage of police and firemen in his latest attempt to make Congress avert the looming automatic spending cuts scheduled to take effect in just 10 days.
The “meat cleaver approach” of the sequester, Obama said, would “jeopardize our military readiness, it will eviscerate job creating investments in education and energy and medical research.”
Obama accused Republicans of favoring deficit reduction measures that he argued benefit the rich and hurt most Americans.
It’s “troubling that just 10 days from now, Congress just might allow a series of automatic, severe budget cuts to take place,” Obama said. “This is not an abstraction: people will lose their jobs.”
But the president doth protest too much, methinks.
The financial data doesn’t support President Obama’s claims of pending disaster due to sequestration. First, the $1T in sequestration cuts is implemented over a period of 10 years. A cut of $85B is scheduled to begin March 1, with over $900B to be cut in the next 8 years.
That’s a cut of $85B from the annual spending of over $3500B, a 2.4% cut. However, sequestration does not result in an actual cut in government spending year over year.
The sequestration “cuts” do not reduce the amount of money the government spent last year by 2.4%, which might result in reduced employment. Sequestration will merely cut the growth in government spending that occurs each year.
What we are not being told by the president is the U.S. budget grows 6% to 8% each year. Sequestration is not a real cut in spending, just a decrease in the growth of government spending year over year.
So, some people may not be hired, but if people are laid off, then something is amiss, I fear. Besides, a reduction of $85B is only 7% of the $1.2T in the annual deficit spending of President Obama, so 93% of the annual deficit will still remain, adding over a trillion dollars each year to the already staggering national debt of $16.5T.
It’s tough for Obama, whose own deficits helped create this “crisis,” to sell financial Armageddon to the people, with devastating cuts due the first of March, when he leaves for a round of golf with Tiger Woods and Congress takes a week’s vacation.
If the president continues to borrow 40 cents of every dollar the government spends, without corresponding entitlement cuts, plus his repeated crying wolf of the pending financial disaster of sequestration; a mere cut in the growth in government spending may become a self-fulfilling prophecy.