Effects of Looming Spending Cuts
President Obama addressed the country Tuesday and said the looming sequester will "not help the economy" and asked Congress to call for its end.
A sequester is a cut in funding of federal programs across the board. The current plan calls for $85 billion of federal spending cuts in seven months and targets the nation's education programs, national parks, defense programs, as well as health and safety programs. Congress could prevent the sequester from occurring, but as the March 1 deadline approaches, it seems increasingly unlikely.
The sequester was actually never intended to go into effect. Instead, it was meant to encourage lawmakers to come to a better agreement to reduce deficit; however, the deadline has loomed for over a year and Republicans and Democrats seem no closer to a compromise.
Even if the sequester is put into place, its effects will not be felt overnight. The furloughs require 30 days notice and the White House budget office can advise affected federal programs on how to deal with their reduced budgets. Both of these methods may buy lawmakers more time to come up with an alternative plan.
Republicans are proposing the replacement of defense cuts with nondefense cuts, while democrats are proposing a combination of spending cuts and tax increases. Neither is willing to budge.
Most federal programs and activities will experience cuts from the sequester. Upwards of 14,000 teachers will be laid off and up to 70,000 children will lose access to the Head Start program. National parks will reduce their hours of operation and offered services. Travelers will see increased wait times at airports. Food manufacturers will undergo fewer FDA safety inspections.
Many federal workers will experience furloughs. In other words, they may be told not to come to work a few days a week. The sequester will also reduce economic growth and job growth drastically.
