So the sky hasn’t fallen and the sun appears to be rising as it always has. Is all good?
Here are some of the recent headlines that I think provide a snapshot of where we are headed. I try my best to ignore the agenda-laden articles and focus in on fact-based articles and opinions.
Once Fearful GMU Economist Now Less Worried About Sequester
George Mason University economist Stephen Fuller, one of the leading voices sowing seeds of fear about the economic damage automatic federal spending cuts known as sequestration would cause in Greater Washington and across the nation, now says that the impact likely won’t be as severe as he predicted.
Watchdogs Not Immune from Sequestration Cuts
Inspectors General (IGs) face budget cuts of over $100 million in fiscal year 2013 due to sequestration, according to a recent Office of Management and Budget (OMB) report. The report shows that 24 IGs face direct budget reductions of anywhere from $1 million to $28 million this fiscal year. Other IGs not specifically itemized by OMB in the report may also be affected through agency-wide cuts. The indiscriminate cuts forced by sequestration subject IGs to the same budget reductions as the agencies they are charged with investigating and auditing. In a Federal Times article today, many IGs indicated that sequestration will impact their offices, resulting in furloughs, leaner staffing, or other cuts that may affect investigations. Full story
Sequestration Cancels Navy Deployments
At least six ship deployments are being canceled or cut short due to sequestration.
3 charts on sequestration, healthcare innovation and the Affordable Care Act
On Monday, the sequestration cuts are set to touch down on Medicare and cause a 2 percent drop in reimbursement payments made to doctors, hospitals and other providers. Read more
As Obama signs sequestration cuts, his economic goals are at risk
Obama is in this predicament after failing to persuade congressional Republicans to agree to a plan of tax hikes and more targeted spending cuts to replace the sequester. The president misjudged his GOP opponents, who have held firm in opposing more tax increases and, so far, have decided to stomach the sequester cuts.
House Republicans, who passed a budget last week with even deeper domestic spending cuts than the sequester, say Obama should be able to manage the government with significantly less spending.
“We want to restrain spending. They want to spend more,” House Budget Committee Chairman Paul Ryan (R-Wis.) said last week after passing the House budget. “We think taxpayers give enough to Washington.”