When the president and the congress failed to agree on an alternative solution, the president then signed the order that dictates budgetary cuts that equals up to 85 billion dollars. The idea for this measure came up about 2 years ago. The president tried to find a way to reconcile the republicans and the democrats and get them to be on the same page on matters regarding the increasing debt of the USA. However the President Obama fears the consequences of this move and blames it mostly on the republicans.
The cuts will mainly affect the defense budget but other areas such as education and medical research and it will even affect the very poor people as the government is taking back a lot of the help given so far to the poor. While the sequester cuts in the USA don’t seem to have an immediate impact on the economy, some analysts fear that the long term impacts can be quite damaging. The defense system will no longer be the iron fist that everybody counts on and furthermore a great amount of people will lose their jobs or will have to take a no pay absence. On the other side economic analysts claim that the consequences of this measure can be kept under control if the measures are applied on a limited time period.
Mr. Reid, accusing Republicans of obstructionism in President Obama’s first term, said of the results, “This is what happens when your No. 1 goal is to defeat the president and not work together to get legislation passed.”
As one can see the opinions on this matter are quite diverse and both sides make a good point. While there still hasn’t been discovered an instrument that can accurately predict the future of the USA’s economy, the common people seem to be entering a state of panic. The government so far has tried to shield the people from the gravity of the economy problems. The increasing debts managed to maintain the American dream and lifestyle for a certain amount of time. But when the USA debt threatened to exceed the legal limit this seemed the only solution.
In the last year budget cuts orders have been issued all over the world. The first reaction of the people is panic. It is then followed by a wave of calmness when people realize that the budget cuts don’t affect them as severely as they had thought. However in time the economic problems only seem to increase and ultimately it seems to be all we hear about. People riot and make protests but the government does not seem to provide any comfort. These situations are very common in a lot of European countries. While on the books the financial situation shows some kind of growth in individual’s houses there are no changes. In previous years individual citizens and corporations were bearing more and more budget cuts with hope that things will eventually get better but still they haven’t.
The USA seems to be entering another state of financial insecurity. How will the world’s first power continue to deal with the economic problems and how long will it take for it to solve them. All in all these sequester cuts seem to have hit the USA at the worst of times, when the USA was attempting to reach a sustainable economic growth once more. It seems rather than finding its balance again the USA economy must take a step back and try to rebuild itself from there. One can only hope that it will manage to do so and no further step backwards will be required.
Comments