The spending cuts that have been seen thus far in America have definitely put people on edge. Regardless of which side one is on, it’s difficult to get around the fact that these cuts are not without their problems. Now, it appears as if spending cuts aren’t going away anytime soon.
The U.S. government refers to the the amount of money spent each year on defense and domestic sectors as “discretionary spending.” As if spending cuts weren’t apparent enough, however, it appears as if they may be poised to extend into 2012, perhaps even dropping by $19 billion. Sequester cuts for the fiscal year 2014 will begin on October 1st, a date that, for many, is coming exceptionally too soon.
The scope of the cuts that has already been seen will continue through 2014, with even more money taken out of the scenario. The cuts affect a variety of government-funded programs, ranging from national parks to the FBI.
Differing Party Views
It’s important to take note of the fact that not everyone is on the same page when it comes to the scope of the sequestration. Democrats and Republicans are finding themselves at opposite ends of the spectrum, which has caused more than enough issues in the Senate.
As far as Democrats are concerned, sequestration cuts are necessary perhaps, but not to the point of the cuts that are being made at the moment. With $19 billion more to come, it should come as no surprise that the Democrats are up in arms.
Republicans, on the other hand, take a very different stance on this situation. To most Republicans, the sequester cuts are not only necessary, but they’re appearing to work as well. Sequestration certainly makes it more difficult for government programs to thrive; however, the benefits that come from these cuts seem to outweigh the costs in the eyes of most Republicans.
It’s a question of whether or not further cuts will actually bode well for the country, to which many on this side of the coin would happily give a thumbs up.
Even though Republicans are in favor of a deeper sequester, it’d be difficult to wear a straight face while saying the cuts don’t cause their own fair share of problems. For certain parts of the economy, the cuts are doing nothing positive to push things in a forward direction.
Farm subsidies, certain unemployment benefits, and more are being affected by sequestration cuts, and they are not likely to fare well in 2014 if cuts become even deeper, as is expected. It is, of course, important to focus on the national deficit, although the effect such drastic measures could have on the U.S. economy certainly has many people nervous about the entire situation.
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2014 and Further On
For those who haven’t quite felt the sequestration cuts, 2014 could serve to be a rude awakening. Many wonder why they’ve heard of sequestration yet haven’t seen any major changes to speak of. The fact is, the cuts that have been made and will extend into 2014 don’t always show an immediate effect. In fact, it can take a rather substantial amount of time before the true effects of said cuts are seen.
There’s no getting around the fact that America is in a great deal of debt. For those trying to figure out ways to navigate the scenario, it hasn’t exactly been easy to come up with a solid solution.
For Republicans and those who lean in such a direction, sequestration has been the closest thing to a true answer that has been seen. Those on the other side of the fence, however, don’t quite feel so enthralled with the principles of sequestration and where they’re taking the country.
It’s difficult to tell at this point exactly how much of an effect spending cuts will have on America in 2014, although things aren’t looking exceptionally good. With more cuts on the way, certain government programs will inevitably suffer, which will make it more and more difficult for the economy to improve in the short-term.
It may not be apparent at the present moment, but sequestration cuts are bound to have a strong effect on the economy, and it might not be pretty.
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