A2 - Fiscal Discipline is Emerging Now

Fiscal discipline is killed-

Sequestration proves
Washington Post, 3-1-13
Posted by Dylan Matthews on March 1, 2013 at 3:00 pm
Update: Happy sequester day! Were republishing this in
celebration of the holiday. Enjoy!
At the end of the month, the dreaded sequester is set to take
effect. Hands up if you know what exactly that means and be
honest. Dont worry, were here to set you straight. Follow along
for answers to some of the most-asked questions about the
impending cuts.
The sequester is a group of cuts to federal spending set to take
effect March 1, barring further congressional actionPresident Obama
signs the Budget Control Act into law. (Pete Souza/White House)
The sequester was originally passed as part of the Budget Control
Act of 2011 (BCA), better known as the debt ceiling compromise.
It was intended to serve as incentive for the Joint Select
Committee on Deficit Reduction (aka the Supercommittee) to
come to a deal to cut $1.5 trillion over 10 years. If the committee
had done so, and Congress had passed it by Dec. 23, 2011, then
the sequester would have been averted.
Obviously, that didnt happen.
Only a few mandatory programs, like the unemployment trust
fund and, most notably, Medicare (more specifically its provider
payments) are affected. The bulk of cuts are borne by
discretionary spending for either defense or domestic functions.
Food stamps are exempt from the sequester. (For The Washington Post)
Most mandatory programs, like Medicaid and Social Security,
A2 - Fiscal Discipline is Emerging Now

and in particular low-income programs like Temporary
Assistance for Needy Families (TANF, or welfare) and the
Supplemental Nutritional Assistance Program (SNAP, or food
stamps) were exempt from the sequester. However some low-
income programs, most notably aid for Women, Infants, and
Children (WIC) and the Low Income Home Energy Assistance
Program (LIHEAP), are subject to cuts.
The 2013 sequester includes:$42.7 billion in defense cuts (a 7.9
percent cut).$28.7 billion in domestic discretionary cuts (a 5.3 percent cut).
$9.9 billion in Medicare cuts (a 2 percent cut).$4 billion in other
mandatory cuts (a 5.8 percent cut to nondefense programs, and a
7.8 percent cut to mandatory defense programs).
That makes for a total of $85.4 billion in cuts.



This sequestration is for sure happening now.
Grier, March 1, 2013
OK, sequestration is really happening. Monday is the first full workday
during which $85 billion in automatic federal budget reductions are in
effect. Administration officials from President Obama on down have
spent weeks warning about the dire effect of these reductions. So
whats the White House going to do now?
Tone down the rhetoric, for a start. Mr. Obamas predictions of lost
jobs and a slowing economy did not push Republicans into agreeing
to a "sequester" avoidance deal containing some measure of
increased tax revenues. Given that the effects of the budget cuts will
take some time to get rolling, the White House is moving away a bit
A2 - Fiscal Discipline is Emerging Now

from dire talk. Democrats dont want to be portrayed as the
budgeteers who cried wolf once too often.
I think the real issue is that this is, as the president said, a slow
grind, said White House economic adviser Gene Sperling during an
appearance on ABCs This Week. When this sequester goes off,
yes, its not going to hurt as much on Day 1. But, again, every
independent economist agrees it is going to cost our economy
750,000 jobs just as our economy has a chance to take off.
RECOMMENDED: Four reasons Republicans are embracing the
'sequester'
Second, the administration wants to give the appearance of a sadder
but wiser organization thats pivoting to other business.
Thus on Monday Obama had his revamped cabinet in for a meeting.
Just-confirmed Secretary of Defense Chuck Hagel was there, as well
as new Secretary of the Treasury Jack Lew.
In remarks for the cameras, Obama prior to the meeting said he and
the assembled department secretaries would talk about ways to ease
sequester pain on federal employees. But he added that his agenda
is broader than just preventing budget cuts. Thus the cabinet would
also talk about immigration reform, early childhood education, and
gun-control efforts, he said.