The American economy is forecasted to lose 700,000 jobs. $1.2 trillion will be gone from government spending over the next decade. The US government will be completely shut down in less than a month if nothing happens, all because of a deal that actually helped the country less than 18 months ago: sequestration.
What is sequestration? Sequestration, in technical terms, is “the action of taking legal possession of assets until a debt has been paid or other claims have been met.” In this case, the assets are government spending. On March 27, the government will hit the debt ceiling, meaning that all federal funds run dry. At this point, the government will have to institute spending cuts totaling $1.2 trillion over the course of ten years.
However, a great number of politicians (from both parties) actually want to cut government spending. The issue is where to cut spending, and these cuts are why the sequester is not well received. The sequester makes 7.6% to 9.6% cuts to all government programs, which is why both politicians and citizens do not like it.
The question then becomes why politicians can’t pass a bill to prevent the sequester from being enacted. Party ideals become the main reason why. As with almost all things, the Republicans and Democrats have two different ideologies about the sequester. Republicans believe that the sequestration is the first step toward cutting the budget overall, dismissing the White House’s dire predictions about the effects of the sequester as a move to scare the party into voting their way. Democrats view the sequester as a real threat to the American economy, that, if set in motion, will wreak havoc on America and the market as a whole.
Sequestration not only affects the government programs, but regular people as well. Over 800,000 civilian employees will be laid off at the Pentagon. $600 million will be cut from the Federal Aviation Administration, causing flights to be delayed across the country. The Women, Infants, and Children (WIC) program that provides assistance to the underprivileged, will have to drop 600,000 members from its program. Pennsylvania itself could lose up to 500 teaching jobs because of sequestration. It would cut economic growth in half and raise prices nationwide.
The Senate has two bills in its queue about the sequestration right now, each written by one party. However, because the Democratic majority in the Senate is only 56 seats, it is very unlikely a bill will pass. Both parties are expected to stick to their guns on these bills, with very little in-party resistance.
Only time will tell the effects on the American economy and government now that the House and Senate have been unable to pass a bill before the March 1 deadline.