|

Let’s look at some facts concerning Sequestration

I’m sure you have seen and heard the parade of public officials, especially the president, predicting doom and gloom if the $85B budget “sequester” begins on March 1. Both sides of the aisle apparently want us to forget that this is a problem of Washington’s own making – spending more than they have to spend and wanting taxpayers to kick in the difference.

Here are some pertinent facts of sequestration you will seldom see or hear:

The debate between the Republicans and Democrats always centers on less spending versus more tax revenues - which is the culprit? If “Debt” is a symptom, “deficit spending” is the disease.

According to the Federal Budget Detail for Fiscal Year 2013, the tax revenue has gone up every year in the Obama presidency. From 2009, the year Obama took the oath of office, revenue was $2.015T. This year’s estimated revenue is $2.9T, an increase of 37.86% or 7.6% per year in revenue collected from taxpayers.

How many taxpayers do you think got that kind of raise in each of the last five years?

The spending, on the other hand in your pocket, has gone from $3.5177T to $3.8034T for an additional 8.12% increase over and above the 37.86% increase in revenue – a total increase in spending of 46%. Deficit spending during this period will total $6.2342T.

It’s a spending problem my friends, not a lack of revenue!

Also, debt is projected to grow by another $5T over the next five years according to the U.S. Federal FY13 Budget. With sequestration, the debt will still grow by $4.4T over those five years. The debt will be over $21T the year after Obama leaves office. Where are your cuts, Mr. President?

The government spent $1.793T just on Medicare, Social Security, Medicaid and interest on the nation debt, which will still be climbing after the sequester. These four items alone account for 50.7% of the budget, but are off limits for the sequester cuts.

The government spent $3.538T in the fiscal year that ended in September 2012. So $85 billion is 2.4% of the federal budget. However, only 1.2% will be cut this year because only $44B will actually be cut, because outlays often lag the budget by months or years, and it will be implemented over months, not in one day.

Put in its proper perspective, the $85B dollars is equivalent to only 9 days of government spending, at almost $10B a day, of which $4B is borrowed – each day, folks, and the proponents of more government spending are crying Armageddon for more services?

This year’s spending, after the Sequestration, will still be $3.553T compared to 3.538T last year.  This is due to the federal government’s type of baseline budgeting.

Excerpt:

Baselining federal budgets, assuming they even had one, in simple terms, if an agency’s budget is $100, and they are expecting an increase of $10 next year, but they only get $8, politicians characterize that as a $2.00 cut in spending.

Concerning the entire $1.2 trillion in “cuts” due to the sequester, it must be understood that they are not really cuts at all. They are really a lowering of the projected increase in federal spending going forward. The CBO cuts through the fog. “For the 2014-2023 period, deficits in CBO’s baseline projections total $7.0 trillion.

How does a cut of only $44B in an a $16T economy possibly be a cause of another recession as predicted by those who wish to keep deficit spending. Even after the sequester the deficit spending will still be $845B and the government will still be borrowing 40 cents on every dollar it spends.

If the economy is so dire, why did the government approve $60.2B in additional deficit spending for Hurricane Sandy relief – for devastating damage along the East coast?

Billions went to FBI salaries, $2B for road construction across the country, not just the East Coast, funding for Head Start, $4M for the Kennedy Space Center in Florida, $50M for the National Park Service, $16B for 47 states to underwrite past and future events from 2011 through 2013.

So, even if the entire $85B in sequester cuts went into effect this year, the cut in spending has now been reduced to $24.8B and the sequester was signed just yesterday

The president has already received his “balanced” approach to deficit reduction, when the taxes for the wealthy were raised $630B over the next 10 years during the fiscal cliff fiasco in January. Now it’s the president’s turn to cut some spending before any more tax increases are considered?

Why with this so-called impending sequester disaster facing our country, did Congress take a week’s vacation and President Obama went to play golf with Tiger Woods. What a crisis management team.

And just think, the continuing resolution/debt ceiling debate will start once again at the end of this month. However, American people deserve just as much of the blame as the government. The voters are the ones who elected these people in the first place!

 

 

Share:

38 Comments

  1. kevind1986

    Lest anyone forget this tidbit:

    “The sequester is not something I proposed, it’s something that Congress proposed. It will not happen.”
    — President Obama in the third presidential debate in October.

    Of course, the media (and even Carney) has had to admit that this was, in fact, a bald-faced lie since Obama was the first to propose the sequester. Spin the quote and the lie anyway you want – but then come back to the fact that this man lies.

  2. Despite your gloom and doom Ted the market has done quite well and corporations are making record profits under Obama so I think he’s entitled to a golf outing now and then as opposed to mountain biking with Lance Armstrong.

  3. The market is up, in large part, because of the devaluation of the dollar by “quantitative easing”.
    Do a comparison using hard currencies, such as gold or silver, and the drop in market value will be easily seen.

  4. Ted,

    One more fact to add: HR 6684 was passed the House last year to make these cuts targeted, not across-the-board. It is sitting in Harry Reid’s inbox. Somebody wake the old fool up and tell him to get to work and bring thsi bill to the floor.

    http://www.gop.gov/bill/112/2/hr6684

    Also, if Obama wants tio eliminate corporate tax breaks, the GOP should propose the elimination of the corporate tax breaks that Obama demanded for the wind and solar industries two months ago.

  5. LeRoy Matthews

    Study my Letter on Diana@Philosophyinaction.com.

    Stop referring to the politicians Deliberately Increasing the Deficit as their attempts to Reduce it!

    The so-called “federal government”is not only Bankrupt, it’s Head- Over- Heels In Debt, & Operating Way In The Red, & It Has A Huge, & Increasing, Budget Deficit. There’s virtually zero $ for anything whatsoever.
    (Instead of searching for Crazy Inbox, try June 5, 2012 p=6498.)

  6. Sequestration doesn’t “cut” the budget, overall, it merely reduces the increase. Congress needs to FREEZE spending at 2012, or earlier, levels, and outlaw baseline budgeting. That would do much more to reduce spending than anything else that has been proposed.

  7. SO tell me liberals, all concerned about these job layoffs, is Herman Munster giving $250,000,000 to Egypt today! PLEASE tell me how the poor and middle class are first priority for Obama and Co.

    • Ted Biondo

      I just heard it myself Juice, but not on mainstream media!

  8. wilson

    Lies, lies!
    “But it prompted several reporters to challenge Carney and other White House officials during the week that followed, and spurred subsequent media skepticism toward what turned out to be false statements from Obama, Duncan and Carney.”

    http://dailycaller.com/2013/03/04/white-houses-false-claims-prompt-media-pushback/2/

  9. And $37,000,000 just given to Pakistan. Thanks for the payroll tax increase, Obama.

  10. Carol Foster

    Did I really read you are questioning why the gov would give money in reference to the Hurricane Sandy problems?????????????????
    And I hear Egypet is also getting Locus besides our proposed money. If the Nile turns red, they are really in trouble there.
    As usual what I read here makes little sense because we don’t take into consideration the laws already in place forcing the Federal Government to provide certain services for its’ citizens. Those laws never take into consideration costs or inflation or rates of unemployment. That is what is driving the deficit and not this President nor either political party.
    You don’t have a spending problem. Your problem is you haven’t defined what you will fund or not fund by changing the laws. Until you take that step, you will be responsible for funding everything on the books as written no matter who sits in the White House.
    This basic lack of knowledge of why government spends money is too silly for words here. A nation’s budget includes far more responsibilities than you personal one so stop comparing it to your wages etc..
    You don’t wrestle the beast by not understanding it. You don’t tame it by not understanding its’ needs. And you don’t live with it by not keeping its’ habitat in good condition. The government isn’t spending just to be spending folks, it’s mandated by laws to provide certain things and so it does just that, so grow up.

    • Ted Biondo

      Carol, As I pointed out only some of the money went to the hurricane victims, most of it went to more government programs like Head Start which they themselves say don’t work, and to infrastructure in a number of states that weren’t even touched by Sandy. Typical big government spenders.

      But regardless it reduces the so-called $85B or really $44B to be reduced this year doesn’t it?

  11. Well maybe Mr. Obama could sign an “Executive Order” eliminating these payments, since we are in such a dire situation with the sequestor, and he could save some jobs!. He has all the power in the world to bypass laws and the Constitution, for that matter. I think he would rather just complain and cry wolf sometimes instead of helping us out.

    • Ted Biondo

      You are so right, Juice about Obama and whining. But he shows no leadership to sit down with the House and Senate to solve the problems. All he does is to vcontinue to campaign to bypass Congress, which is all he knows how to do and the country burns while Obama fiddles.

  12. Re: “it’s mandated by laws to provide certain things”

    What the Founding Fathers envisioned was a LIMITED Federal government, with enumerated powers.

    Liberalism seeks to turn that noble vision into a cradle-to-grave nanny-state, where government controls every aspect of our lives. It is destroying the normal family structure, which is the foundation of civilized living. Rather than having the freedom to excel and prosper, using our initiative and self-reliance, we will be equals in socialist misery. Except, of course, for the Leftist elites, who will rule over us.

  13. Re: My previous post:

    https://www.facebook.com/IamTheTeaParty

    @ Juice: I object to your characterization of Kerry as “Herman Munster”. While there may be some physical resemblance, Herman was good-natured and HONEST. ;-)

  14. JRM_CommonSense

    Hello sequestration, hello all time stock market record close.

  15. JRM – Smaller gov’t leads to higher wealth creation. Wonder when the Left will get this?

    Since the sequester, the federal gov’t has posted for 400 additional jobs.

  16. JRM, you might also want to take into account the devaluation of the dollar by the Fed.

    In 2007, gold prices varied from $639.00 an ounce, to $833.00 an ounce.
    Today’s London quote: $1582.00.
    So, in hard currency, the U.S. dollar is worth about one half of what it was in 2007.

    • Ted Biondo

      Plus Bernake is printing paper faster than the securities they are buying in QE2,3 ,4 ….. Wait until the inflation takes hold and we will really see what the stock market is worth. I didn’t think this many people could be hoodwinked by the government at the same time.

  17. Snuss,

    You should probably look up the definition of hard currency.

    You should also probably look up dividend payments and their contribution to total stock market retun over the decades. Equal valuation does not mean the return was 0. What dividend does gold pay again? Oh, okay.

    So like JRM said, hello all-time DOW high!

  18. I should have used commodities, rather than hard currency, for my example. However, the dollar has been significantly devalued, especially during the Obama years. The price increases in many commodities, such as gold, is proof of that. Some groups have even suggested changing the U.S. Dollar’s status as a “reserve currency”, because of our current fiscal issues.
    See: http://online.wsj.com/article/SB10001424052748703313304576132170181013248.html#articleTabs=article

  19. Carol Foster

    Did you really say Head Start doesn’t work, Ted? It works very well for those enrolled in it. What the report said was eventually, those not enrolled, do catch-up in later grades. Not that a failure of the program. Teaching children early is an advantage that lasts them a lifetime in how they continue to look at learning throughout their lives.
    And SNuss, what the Founding Father’s envisioned one way or the other has nothing to do with what the laws are now on the books or what legally the Fed must fund. Dictators fund a strong military and not much elese. Seems that’s what some would like to see, funding the military and not much else when they suggest cutting the Fed back to the numbs but funding military full blast. Does that make you in favor of a dictatorship?
    Does that make your impression of what the Founding Fathers make them seek a dictatorshop?
    Two hundred plus years and a world that has seen many changes tells me change is what keeps this nation alive and a backwards motion will surely kill it.
    Money problems shift with the times, but who we are as a nation is what we need to value. How we treat our own in emergencies or hard times defines us as a nation. The name calling says clearly how much we’ve already lost and plays directly into why we see no compromising going on. When a head of the House refers to the other section of the Legislative branch as those who need to get off their “asses,” that make my point. Those who seek that low a level will never be able to compromise or solve problems. They are the problem. It saddens me they are also an example of what should be thought of as not fit for elected government, but they get cheers for their behavior.
    You see no real solutions because you give no real respect to those you must deal with for a resolution in these financail matters.

  20. Now, the Obama regime is trying to cause “pain’ for the citizenry, supposedly caused by sequestration, attempting to back up its recent scare tactics. A few examples:

    White House tours, which are led by UNPAID volunteers, have been cancelled.
    (BTW, the Capitol WILL remain open for tours, per the Speaker)

    Also,

    Animal and Plant Health Inspection Service official Charles Brown said he asked if he could try to spread out the sequester cuts in his region to minimize the impact, and he said he was told not to do anything that would lessen the dire impacts Congress had been warned of.

    “We have gone on record with a notification to Congress and whoever else that ‘APHIS would eliminate assistance to producers in 24 states in managing wildlife damage to the aquaculture industry, unless they provide funding to cover the costs.’ So it is our opinion that however you manage that reduction, you need to make sure you are not contradicting what we said the impact would be,” Mr. Brown, in the internal email, said his superiors told him.

    Officials with airports cited by Homeland Security Secretary Janet Napolitano as examples of how the sequester would delay airline travelers say she’s wrong — they’re not delaying flights one bit.

    “We haven’t had any slowdowns at all,” said Marshall Lowe, a spokesman for Los Angeles International Airport, one of the airports named by Ms. Napolitano, The Telegraph reported. Mr. Lowe added that he had been on duty all weekend — and even then, there were no reports of the security delays Ms. Napolitano warned was occurring as a result of mandated budget cuts.

    Patti-Poo should enjoy seeing the race card being played:

    “Sequestration will impact everyone, but it will have a particularly harmful effect on communities of color who were hit first and worst by the great recession, and have yet to significantly feel the effects of the recovery,” said Rep. Barbara Lee, in The Hill.

    Nothing like re-inventing the facts to fit the Obamunist agenda, is there?

  21. For all you Lefties getting giddy over this, let’s compare a few economic facts since the DOW was last at thsi level in 2007:

    Avg Median Income today – $51,584, in 2007 – $54,623

    U-6 Unemployment today – 14.4%, in 2007 – 8.4%

    Fed’s balance Sheet today – $3.09Trillion, in 2007 – $890 billion (the source of the growth in the stock market)

    Interest Rates on a 12 month CD today – .31%, in 2007 – 4.04%

    If Bush had the Fed lowering interest rates to this level and adding $2 Trillion to the money supply, his economy would have been better than it was.

  22. JRM_CommonSense

    October 2007′s record close of 14,164.53.

    March 2009′s record close of March 9, 2009.

    One has to be an idiot to believe that this type of fall can be blamed on a president who had only been in office for a little over 2 months.

    An investor who put $1,000 into the stock market on March 9, 2009, the day Dow bottomed out after the Great Recession, would now have $2,406. That’s a total return of 140.6 percent, including stock gains and dividends.

  23. JRM_CommonSense

    Correction: March 9, 2009′s record close of 6547.05.

  24. JRM,

    And the rise in the stock market has a lot more with what Ben Bernahke has done that what has Obama has done. Pump two trillion dollars into teh economy and have interest rates at all-time lows, the stock-market will be one of the only viable alternatives left to invest in order to get a yield.

  25. JRM_CommonSense

    Terry,

    It seems you have forgotten a few things.

    First, it is not Obama’s job to run the United States Federal Reserve. It is Brenanke’s job.

    Second, Bernanke served as chairman of President George W. Bush’s Council of Economic Advisers before President Bush appointed him on February 1, 2006, to be chairman of the United States Federal Reserve. Bernanke was confirmed for a second term as chairman on January 28, 2010, after being re-nominated by President Barack Obama.

    Third, It was not George Bush’s job to run the United States Federal Reserve, It was Bernake’s.

    Fourth, Congress and the president control fiscal policy and the Federal Reserve System dominates monetary policy, the control of the supply and cost of money.

    So, did Bernake’s monetaruy policies cause the Great Recession, or did Bush cause the Great Recession because Bernanke did more than he did? Did Bernake’s monetary policies help us get traction on the Great Recession, or did Obama fail to get us out of the Great Recession because Bernake did more than he did?

  26. It seems that the Democrat cover-up of the sub-prime mortgage mess had a lot to do with it. And then-Sen. Obama was well-paid, in campaign contributions, for his participation in that fiasco. In any case, the Fed’s leadership IS influenced by the President’s agenda.

  27. monkey

    Unemployment down. Again. Stock market hitting record highs. Driving wingnuts crazy.

    • Ted Biondo

      monkey, most of this recovery is because of the fed’s printing its own money and purchasing the U.S. debt. Wait for inflation, once the fed stops and this man-made house of cards to come tumbling down on our heads. Near zero interest rates are unsustainable and the interest on the $16.4T debt will kill us. It hasn’t worked in Europe and it will not work here!

      However, monkey you can come to me for a loan when that happens, but I can’t guarantee you zero interest like the fed.

  28. There is a new Wal-Mart or McDonalds somewhere! Yipee! My guess is Obama just transfered another bunch from unemployment over to permanent disability.

  29. Monkey might want to note that those unemployment numbers are based on a workforce that is EIGHT MILLION smaller than four years ago. Add them back in, and the numbers grow appreciably. Those who gave up looking for work are not counted. Do you think our population is getting smaller, or just the workforce?

  30. More info about the real story on unemployment:

    It’s Worse Than We Thought… 296,000 Fewer Americans Employed in February Than in January

    See: http://www.thegatewaypundit.com/2013/03/its-worse-than-we-thought-296000-fewer-americans-employed-in-february-than-in-january/

  31. JRM,

    I didn’t forget those four things, I was actually stating that when saying the Fed is resposnible for the Obama run-up in the market more so than Obama’s policies.

    The cause of the great recession was due to democratic mortgage meddling policies. Don’t encourage loans to unqualified borrowers and you don’t have a mortgage bubble. Whuich party do you think was out in front on that?

    Spank the Monkey,

    Be proud of that 7.7% unemployment rate 44 months after a recession. Obama’s best unemployment rate now beats Bush’s worse.

    Maybe the unemployment rate is coming down due to businesses cutting back the 40 hour/week worker’s hours to 20 and then hiring a part-timer to fill those 20. Avoids ObamaCare mandate.

  32. Look at this article and see where the Obama regime thought unempoyment would be now with the Stimulus and also without

    http://www.aei-ideas.org/2013/03/to-praise-the-february-jobs-report-is-to-embrace-the-new-normal-economy/?utm_source=today&utm_medium=web&utm_campaign=030813

Leave a Reply

Your email address will not be published. Required fields are marked *

CAPTCHA Image

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>