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Thursday, February 7, 2013

An Easy Solution

Under the statute that requires the spending "cuts" of sequestration, there is no limitation on Congress deciding to reallocate those budget reductions.  The law requires a reduction across the board for almost all federal spending other than entitlements.  Every program is cut equally with the exception of Medicare which is limited to a 2% cut in provider payments.  Congress, however, could change this allocation by just passing a bill to do so.  And to be clear, spending amounts are not cut; they just do not rise as fast as originally expected.

These facts are important to keep in mind when you hear the caterwauling from the Democrats about intolerable cuts that will take food from babies and force the homeless onto the streets.  Those results are not carved into stone; they could easily be changed.  In fact, the House already passed two different measures to reallocate the cuts to reduce any discomfort caused by the spending reductions.

Interestingly, the Democrats today put forth a proposal to close the budget deficit enough to do away with the need for sequestration by printing additional money.  In fairness, the proposal came from the kooky Congresswoman who heads the House Progressive Caucus.  Her understanding of economics is clearly non-existent.  Printing up that much money would move us toward the collapse of the dollar and the destruction of the American economy.  But then again, why should she understand that?  After all, she is just a progressive Congressman.

If the Democrats really want to avoid any of these cuts, they have only to pass a bill in the senate to reallocate the cuts and then send that bill to the House.  But they will have to act quickly.  So now, for any of you who are waiting for the senate Democrats to act, I suggest that you do not hold your breath while you wait.

One final note:  I realize that I keep writing about sequestration.  Sorry if that is boring.  I just find it amazing to watch the nonsense that passes for reasonable discussion on the subject.



 

 

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