February 28, 2013

Sequestration


Congress ... really? You can agree on giving AIG $85 billion in an emergency situation, but you can't agree on how to cut $85 billion during a non-emergency situation?

Don't get me wrong. I'm okay with cutting costs; even deep cuts, when necessary; but I would just prefer we did it the old fashioned way -- through smoke-filled, back-room politics.  Btw, did you think to cut your own pay before you headed home?

This from an Auburn.edu site entitled, A Glossary of Political Economy Terms


Sequestration

Originally a legal term referring generally to the act of valuable property being taken into custody by an agent of the court and locked away for safekeeping, usually to prevent the property from being disposed of or abused before a dispute over its ownership can be resolved.

But the term has been adapted by Congress in more recent years to describe a new fiscal policy procedure originally provided for in the Gramm-Rudman-Hollings Deficit Reduction Act of 1985 -- an effort to reform Congressional voting procedures so as to make the size of the Federal government's budget deficit a matter of conscious choice rather than simply the arithmetical outcome of a decentralized appropriations process in which no one ever looked at the cumulative results until it was too late to change them.

If the dozen or so appropriation bills passed separately by Congress provide for total government spending in excess of the limits Congress earlier laid down for itself in the annual Budget Resolution, and if Congress cannot agree on ways to cut back the total (or does not pass a new, higher Budget Resolution), then an "automatic" form of spending cutback takes place. This automatic spending cut is what is called "sequestration."




2 comments:

  1. Politics is an interest of mine also. In listening to the news the last few days on this issue, and who the cuts will affect, I keep wondering why nothing is ever mentioned about cutting foreign aid. When it gets to a point our own school children and military and law enforcement will suffer from Congress overspending our taxes...why should we keep funding billions in aid to country's who could care less whether we remain solvent?

    ReplyDelete
  2. O over sells his complaining. America needs to cut the budget. Oh, I forget, what budget?

    ReplyDelete


Ask a question or share your thoughts.

Tip: You may create any "name" you want by selecting the "name/URL" line in the menu area below. Your URL is completely optional. You may also create a link to your own site by selecting one of the "open ID" lines.

Viewing Hint: Click on a posting's title in the blog's left margin to display just that posting with any related comments below it.