Sequestration Frustration!

Budget Control Act of 2011

Before you freak out you should see what's really going on here. First we have to go over Baseline Budgeting. In a nutshell the government forecasts an increase in the budget of (7)% each year.

The Deficit Control Act of 1985 provided the first legal definition of baseline. For the most part, the act defined the baseline in conformity with previous usage. If appropriations had not been enacted for the upcoming fiscal year, the baseline was to assume the previous year's level without any adjustment for inflation. In 1987, however, the Congress amended the definition of the baseline so that discretionary appropriations would be adjusted to keep pace with inflation. Other technical changes, annual increase of now approximately 3% plus inflation, to the definition of the baseline were enacted in 1990, 1993, and 1997. Presently, the [automatic annual] Baseline Budgeting increase is about 7%.

The Sequester is around a 2% reduction in the budget for fiscal year 2013. So what we really have here is an increase of roughly 5% instead of 7%. Obama and the Democrats have made as if half of the government will shut down because of a 2% difference in the forecast government budget.

Now let's look at Stimulus Spending and its aggregate impact thus far. The stimulus bill, passed in 2009, allotted more than 800 billion dollars to various areas of government. The budget in 2009 was roughly 2.7 trillion. That means that the Obama Stimulus Plan, the American Recovery and Reinvestment Act of 2009, was a budget increase of roughly 29%. Did the American Recovery and Reinvestment Act of 2009 create never-ending jobs? Where did the money go? Did it go into programs that were projected to have Stimulus spending forever?

Knowing that the Stimulus Bill, an increase of almost 29%, didn't create tons of jobs; how are we supposed to believe that a budget decrease of 2% is going to cause mass layoffs?

Mass layoffs don't make any sense when looked at logically. Are we to believe that labor is the last 2% of the federal budget?

If I made $500,000 a year and have a decrease of 2% I now would be left with $490,000. Does that mean that my family will starve now because of a $10,000 reduction in pay? That is what Obama and the Democrats want you to believe. Don't buy it. Now that Obama's bluff has been called; I'm wondering how the media is going to hide this.

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