http://money.cnn.com/2013/02/21/news/economy/budget-cuts/index.html?iid=HP_MP_River
The article lists the 3 biggest problems with the $85 billion budget cuts set to take effect this coming March 1st. First, they are indiscriminate due to the fact that they are going to be applied in a uniform way across the board. That means needed projects and investments will be cut in equal measure with bloated projects that are duplicative. And people doing good work will lose jobs or pay right alongside people who do shoddy work. Second, they cut from the smallest part of budgets. Most of the cuts will come from discretionary spending - defense and nondefense - which together account for just over a third of all spending. Third, they don't really address the debt. While the cuts will reduce deficits, they won't help prevent the country's debt from growing. That's because the real drivers of the country's debt (to name a few: Medicare and Social Security) are largely exempt from the March 1 cuts.
People are obviously not happy about it and the analysis is telling us that they are not doing us much good. The question now is would lawmakers be compelled to undo at least some of the coming budget cuts before it's too late?
1 comment:
with the economy running a deficit even though the tax cuts are required people are going to be unhappy about it. The government needs to take a popularity hit to make sure that the government runs more smoothly and the economy doesn't default
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