Budgets

The sequestor is coming, OH MY!

Here are some realities for you.  The speed at which congress is able to move anything through the system prevents them from stopping the sequester.  The other realities are shown in the video below.  It is a pretty good summary of how significant these items are in the bigger picture.

 

What is not mentioned, that is important, is that the sequester dictates where the cuts are to be made.  Specific areas and programs of the spending in each branch are targeted, and that is where the rub really is.  A 17% reduction in Operations and Maintenance funding for a capital equipment heavy institution like the US Navy is a big deal, and it has a ripple effect in the economy.  Recent discussion, about changing the sequester language to provide more latitude to the DOD and other departments to redirect the cuts makes sense.

The big issue that the politicians should be discussing is how to avoid shutting down the government after 27 Mar 13.

Look most companies and governments understand that deficit spending is not sustainable.  You have two choices, either increase revenue or reduce spending.  You can reduce spending by being more efficient or eliminating programs that are no longer viable.  The appetite of your customers (citizens) to buy your product is what dictates your revenue.  This is pretty simple and basic stuff.  But the first thing that has to happen is you have to have a business plan and associated budget.  Right now, the partisian agendas that exist in DC are obstacles to achieving anything.  Unfortunately, it seems to be that the House Minority leader, and the Senate Majority leader are unwilling to do what is “right” for the country and find a compromise position that will allow the government to reach a balanced fiscal plan.  The biggest first step rein in spending, and pass a balanced budget.

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