How Sequestration Will Affect Federal Research Agencies
carmendrahl writes "Unless Congress and the White House act before March 1, the automatic across-the-board spending cuts known as the sequester will kick in. And federal agencies are bracing for the fiscal impact. Federal agencies and the White House are releasing details about how these cuts will affect their operations. If the cuts take effect, expect fewer inspections to the food supply, cuts to programs that support cleanups at former nuclear plants, and plenty of researcher layoffs, among other things."
It's worth noting that all this discomfort only results in a drop of $85 billion. In part, that is because mandatory spending, which is something like 60% of the budget, isn't affected.
Still, looking at the list, there's a number of worthy budget cuts, such as the oversized federal law enforcement, small business loans, and various "government service" rent seeking. And one really has a hard time arguing against a 13% cut back in defense spending.
As I see it, the problem with sequestering isn't that it cuts government services, but that by its nature it can't target less effective spending or any mandatory spending at all.
Shame it's not tied into Politicians' pay,
Actually, their pay (Congress/Senate) is supposed to be withheld until the sequestration ends.
If this is the end of the civilized world, as some are fearmongering it, why was Obama out on a golf vacation instead of working on the budget? Does this show how seriously he takes it? Sequestration was his idea after all.
Chaos maximizes locally around me.
Just a few years ago, the budget was 2/3 of what it is now, so how were food inspections paid for then?
Most people don't realize that this big deficit spending problem started when the $787B "one time stimulus" became part of the baseline budget and was re-spent (and then some) year after year after year on the biggest government expansion ever seen on this Earth. That $787B is STILL being spent over and over again.
Bond Bubble Ben is still printing Bernanke Bucks at a rate of about $1T/year as well, because the FED is the only entity willing to buy new US debt anymore.
When are Americans going to wake up and realize that you can't spend money you don't have on things you neither want nor need and expect to come out ahead at the end of the day?
I guess "as long as I'm getting mine" is the new American Dream.
Here are some gross, as in disgusting, numbers for US Government Spending:
2006: 2655.1B
2007: 2728.7B
2008: 2982.5B
2009: 3517.7B
2010: 3456.2B
2011: 3598.1B
2001: 1862.8B
If you take the 2001 spending figure and adjust it for inflation, it is 2411B, so in 2011 dollars we're spending 1186B more than we were in 2001.
1.2T in government growth, people. That's 49%. And that's just government growth at the federal level. Government is taking fully 50% more money from us (and our kids, and their kids, and probably also their kids after that) than they were 10 years ago.
Sources:
http://www.cbo.gov/sites/default/files/cbofiles/attachments/HistoricalBudgetData.xls
ftp://ftp.bls.gov/pub/special.requests/cpi/cpiai.txt
Nothing is getting cut. Period.
In all cases, they're getting more money than they got last year. Except that instead of an 8% increase, they're getting a 6% increase. And that's what the socialist in the White House is calling a "cut".
The automatic sequestration will only remove $44 billion from this year's budget. Bigger cuts will occur in later years. But you should know that the government will still spend more this year than last, despite the sequestration. It's just that the increase won't be as much. The crying of poverty is just political BS.
Actually, their pay (Congress/Senate) is supposed to be withheld until the sequestration ends.
Unlike the rest of federal employees who won't get their pay back after sequestration ends, congressmen/senators will.
If this is the end of the civilized world, as some are fearmongering it, why was Obama out on a golf vacation instead of working on the budget?
It is the legislative branch who has failed to act, not the executive.
Does this show how seriously he takes it? Sequestration was his idea after all.
Though Obama proposed the idea, 174 House Republicans, a majority of the majority, joined 95 Democrats to pass the plan. So Republicans arguably own the sequester as much as Obama, if not more so, since Obama never wanted to link spending cuts to the debt ceiling.
A house divided against itself cannot stand.
From a David Casey online newsletter, courtesy of a friend's blog:
Lesson #1
US Tax revenue: $2,170,000,000,000
Federal budget: $3,820,000,000,000
New debt: $1,650,000,000,000
National debt: $14,271,000,000,000
Recent budget cuts: $38,500,000,000
Let’s now remove 8 zeros and pretend it’s a household budget:
* Annual family income: $21,700
* Money the family spent: $38,200
* New debt on the credit card: $16,500
* Outstanding balance on the credit card: $142,710
* Total budget cuts so far: $385
When the federal reserve is engaged in "quantitative easing" ie. flooding the bond market with cash, the government is in effect cratering the price. It may not be the treasury dept. do it but the fed and treasury often work together on economic policy.
You might want to work on be slightly more informed.