How the present fiscal ‘crisis’ rolls right into the next one
I don’t know about you, but I haven’t had any pieces of sky falling on my head today.
The automatic spending cuts known as sequestration take effect beginning today. It’s a little early to gauge whether doom is truly upon us, but the way Americans sense the cuts have affected them — or not — will help determine how the next serial “crisis” is teed up.
We already know what that crisis will be: the debate over a new continuing resolution (CR) to fund the federal government. Because congressional Democrats have given up on the budgeting process, which would force them to commit in black-letter documents to the kind of tax-and-spend plans they desire for the coming years, the government ends up being funded for a few months at a time. The latest CR expires later this month, so it would seem the debate will now shift to that fight.
It would seem so, except that that fight is the one the White House has been waging for a couple of weeks now.
The intent of the scare stories about sequestration, in all likelihood, were only partly about sequestration. President Obama no doubt would have loved for congressional Republicans to back down and either kick the cuts down the road a bit further, as they did in the “fiscal cliff” deal, or even agree to some new taxes in place of, say, defense cuts. But he was also fully aware that leverage was ultimately on Republicans’ side if they were resolved to let sequestration proceed — as was the case for him in the fiscal-cliff talks, when taxes were scheduled to go up if no one did anything.
So, it’s altogether likely that Obama wanted to talk up the effects of the sequestration cuts not just to pressure them to cave now, but also to build leverage for the CR discussions. After all, if Americans do feel pain from sequestration, he can argue for higher spending in the CR. If they don’t, he can claim to have taken all possible measures to avoid pain now — but to be without any such protective options if spending falls further in the CR.
The talk about “balance” — i.e., raising taxes — will become even louder when the CR is debated. Never mind that the tax hikes in the fiscal-cliff deal are double the spending cuts under sequestration.
The question now becomes: What do most Americans think about the changes wrought by both deals? Will they feel more affected by the tax hikes or the spending cuts? And will they then balk at going further down one road or the other — or maybe find themselves willing to keep going down both?
One would think the fact that everyone’s payroll taxes went up would trump the far less universal spending cuts. But there will be a lot of argument-by-anecdote about spending cuts in the coming weeks to try to negate that.
– By Kyle Wingfield
Tell us what you think about the site
Customer Care »
Vacation stops, manage subscriptions and more
AJC Services
Sections
Other Editions
Visitor Agreement | Privacy Statement
© 2013 The Atlanta Journal-Constitution
499 comments Add your comment
Lil' Barry Bailout - OBAMAPHONE!!!
March 2nd, 2013
12:26 am
Kid’s problem is he has his guy in office and can’t believe how bad he screws everything up. Massive, record unemployment, more folks in poverty than ever before, and trillion dollar deficits. Folks like Kid don’t like having their noses rubbed in their hero’s failure.
bluecoat
March 2nd, 2013
12:56 am
I do not believe he would be kicking a can at his wake or there would be that much water in the road,Could be he’s kicking a cow down the road,or a dead cow,patty.
bluecoat
March 2nd, 2013
1:22 am
No Obama did not invent the Teaquester,nor should he be blamed for it.The name pretty much identifies it.All this and the end results rest on “making him a one term president”.
ODD OWL
March 2nd, 2013
2:17 am
Republican intransigence and obstructionism will go full circle and return to bite them in the arse… No evil deeds go unpunished…
Lil' Barry Bailout - OBAMAPHONE!!!
March 2nd, 2013
2:22 am
Guess which party obstructs the budget process every year, hypocrite.
ODD OWL
March 2nd, 2013
3:18 am
Clarence Thomas and Antonin Scalia are racial bigots and its time for them to go… Both of them are bias, prejudice and bigoted… Thomas and Scalia act on emotional impulses without the benefit of rationality, logic and reason… These two scoundrels are lacking in honesty and integrity which causes Americans to question their character… These Republicans are trampling on the Constitution and the Bill of Rights… They’re hell bent on desolving the Union…
Tiberius - pulling the tail of the left AND right when needed
March 2nd, 2013
6:27 am
“No Obama did not invent the Teaquester,nor should he be blamed for it.”
Bob Woodward and reality disagree with you, bluecoat.
Tiberius - pulling the tail of the left AND right when needed
March 2nd, 2013
6:47 am
“No evil deeds go unpunished…”
Not so, ODD OWL.
President Incompetent did get re-elected.
James
March 2nd, 2013
7:08 am
Yawn. DOW hit an all time high
KEITH
March 2nd, 2013
8:42 am
It would be nice if we had a Real President.
One like Reagan
Who tripled our National Debt and cut and ran like a coward from Beirut.
Or like George W. The coward who had his daddy open every door for him and get him out of Vietnam
Real men like that ?
– See more at: http://blogs.ajc.com/kyle-wingfield/2013/03/01/how-the-present-fiscal-crisis-rolls-right-into-the-next-one/?cxntfid=blogs_kyle_wingfield#sthash.Ed0b6XAs.dpuf
cheesy is having trouble reading. REAL PRESIDENT. And yes it would be nice to have a real American President.
KEITH
March 2nd, 2013
8:43 am
now liberals are calling obama and jay carney liars. they both agree the sequester came from obama.
KEITH
March 2nd, 2013
8:45 am
for the first time in history a president proposed a plan, got his plan passed into law and then went on tour telling the country his plan was a terrible idea and the other side should do something to prevent his plan from taking effect.
Lil' Barry Bailout - OBAMAPHONE!!!
March 2nd, 2013
8:51 am
That’s because he’s not a leader, Keith, he’s a community organizer. And not a very good one, if Chicago is any indication.
Aesop's Fables and other Lib Economic Theories
March 2nd, 2013
9:10 am
Republican aides said the GOP has maneuvered the president into a corner. Aides believe the sequester will affect Democratic constituencies more deeply than Republicans’, and by adding defense-related bills into the continuing resolution, they feel they can pacify their own hawks longer than Congressional Democrats can keep in line their members who cherish social programs.
Game ova.
azazel
March 2nd, 2013
9:12 am
well, republicans and their familiars and funders have a single agenda: destroy government, then sell the remains to corporations, we the people will have nothing but corporate servitude awaiting us.
KEITH
March 2nd, 2013
9:15 am
Little Barry obama went to the store to buy a skateboard. The salesman asked little barry do you know how to ride a skateboard. NO I DONT, an angry barry said. I just want a skateboard. Dont you want to learn how to ride one first barry? NO I DONT, I just want the skateboard. OK lets go look for some safety gear in case you fall, heres a helment, elbow and kneepads. Little barry angrily yelled I DONT NEED THAT CRAP, NOW GIVE ME THE SKATEBOARD. ok ok barry heres your skateboard, just be very careful with it and dont hurt yourself.
The next day little barry comes in with a broken arm, busted up nose and bandaged head. What happened to you little barry the salesman asked? I FELL OFF THE SKATEBOARD YOU SOLD ME. WHY DID YOU SELL ME A SKATEBOARD WHEN YOU KNEW I COULDNT RIDE ONE. ITS YOUR FAULT. WHAAAAAAAAAAAAAAAAAAAAAH
Tiberius - pulling the tail of the left AND right when needed
March 2nd, 2013
9:27 am
azazel, hyperbole much?
indigo
March 2nd, 2013
9:31 am
Aesop – 9:10 “Republican aides said”
And, of course, you believe everything Republican aides say, right toolie?
indigo
March 2nd, 2013
9:32 am
Tiberius – 9:27
That old saying “the pot calling the kettle black” certainly comes to mind now.
KEITH
March 2nd, 2013
9:32 am
Maxine Waters: “Over 170 Million Jobs Could Be Lost” Due To Sequester Cuts…Problem: Only 134 million employed right now
Half Century Dawg
March 2nd, 2013
9:44 am
one thing is for sure, Obama and his team will be tripping all over themselves to take credit if this reduction in the rate of increase has a positive effect
Tiberius - pulling the tail of the left AND right when needed
March 2nd, 2013
9:49 am
“That old saying “the pot calling the kettle black” certainly comes to mind now.”
Only in Indigoville, where the poster has no concept of the meaning of the word.
But in reality, not so much.
MarkV
March 2nd, 2013
9:56 am
All those smart alecks snickering about Obama’s presumed role in the sequester idea and his denunciation of it‘s implementation now as terrible keep forgetting the basic fact – the sequester was invented and designed to be terrible, so terrible that it would force the “super-committee” to take more reasonable action. The fact that the committee failed does not change that.
Tiberius - pulling the tail of the left AND right when needed
March 2nd, 2013
10:02 am
Deflection alert at 9:56!
Rafe Hollister preparing for an Obamanist America
March 2nd, 2013
10:31 am
A leader would be out front rallying the troops and converting the enemy, rather than depending on a Super Committee to steer the Country.
Community Organizers are obviously better on the golf course than in a conference room.
Dusty
March 2nd, 2013
10:36 am
Actually,
Washington needs to be run like sensible GEORGIA.
We have a BUDGET that must be met.
We have a sensible governor who does not take handouts that would be expensive later and does not play golf..
We throw out school boards that do not perform well.
We study ways to improve our schools and our transportation.
We even have a fine newspaper (even though I don’t agree with everything they publish).
We have the finest airport in the country.
We have out-of-state people rushing to live here.
Welcome, South, brother. Too bad the rest of the country can’t catch up with us. But, mind your manners when you come here. We’ve got standards, you know, and we are going to keep them. Do not worry about Washington. In about four more years., a vast improvement will begin even for the slow learners of our country..
Dusty
March 2nd, 2013
10:39 am
Awww I forgot our fine universities that are leaders in that field and several sports teams that shine .. GO BRAVES!
There.. Great stuff GEORGIA!
Aesop's Fables and other Lib Economic Theories
March 2nd, 2013
10:43 am
“There was a specific mention in the news today by a high ranking official that said ‘The employees that clean and maintain the US Capitol will receive a cut in pay’ (not specific quote but very close to it),” Elias continued.
“This is NOT TRUE,” wrote Elias. “Therefore, I request that you please notify all of our employees about the importance of ignoring media reports.”
And, of course, the high ranking official that told the lie – obozo.
MarkV
March 2nd, 2013
10:57 am
As usual, the blog has degenerated quickly into the many times repeated charges and countercharges, claims, bickering, insults and responses to insults.
The conservatives’ viewpoint of the subject of spending cuts has been best summarized in the following:
“First, Indigo, define “suffer”. Is it that some families might have to tighten their belts a bit? Some people might lose their jobs? “
For people like that, tightening belts, losing job is inconsequential suffering – as long as those are not their belts and their jobs. Unfortunately, even people like Dusty give an impression that they believe that “spending cuts” somehow mean just reducing the numbers in the budget. That changing the budget will reduce the deficit, and then eliminate it, that will reduce and eliminate the national debt, and everyone will live happily ever after. They ignore the fact what spending cuts really mean which is, with only minor exceptions, money that some Americans do not get, not necessarily directly from the government, but also through projects the government funds or supports.
Then there are those who believe that the government should take money from people only for defense, and at most for a very few other minor functions. The private sector will take care of everything else and no government intervention is necessary. Those are people that do not even belong to this century and society.
I am sure that it is comforting to believe the illusion that it would be a simple matter to make cuts just by eliminating “waste.” Nobody wants waste, right? That would make everybody happy. Unfortunately, while it is easy for some waste to agree on (for instance, fraud), for the most part, “waste” is in the eye of the beholder.
And how many times have we seen some “sage thinker” pontificate: “You can’t borrow and spend yourself out of debt.” Evidently not anticipating that there is an answer to that, which is: Yes, you can.
bluecoat
March 2nd, 2013
11:05 am
Chicago was never corrupt,until Obama come along.Calumet city never exist until Obama come along.Standard oil,Union Carbide Inland,Us,Youngstown,steel mills were all thriving until Obama come along.Lake Michigan was never polluted until Obama come along.And I say poor losers.
Tiberius - pulling the tail of the left AND right when needed
March 2nd, 2013
11:08 am
““You can’t borrow and spend yourself out of debt.” Evidently not anticipating that there is an answer to that, which is: Yes, you can.”
Really, MarkV?
Where has that worked when your debt is 80% of your GDP?
Bruno
March 2nd, 2013
11:11 am
For people like that, tightening belts, losing job is inconsequential suffering – as long as those are not their belts and their jobs.
I can only hope that jackasses like MarkV will realize one day that no one wants to see his fellow man suffering. However, over in the real world, enduring short-term pain is sometimes necessary to achieve long-term health. The Democrat plan to keep printing/borrowing more money is beyond irresponsible, and will only result in greater suffering later.
bluecoat
March 2nd, 2013
11:12 am
All this debt never exist until Obama come along.Hog farms were thriving in Secacus until Obama come along.
bluecoat
March 2nd, 2013
11:15 am
Did not have Feds printing money until Obama come along.
Tiberius - pulling the tail of the left AND right when needed
March 2nd, 2013
11:23 am
bluecoat, do you think it is better to keep doing the same things over and over again that haven’t worked in the past 4 years, or do you think we should try something different?
Or are you just here to be a jerk?
bluecoat
March 2nd, 2013
11:29 am
No tiberius I leave the jerk part to TD and his many AKA’s.As for the same over the past 4 years no I think Obama should show better leadership,and congress should do the same.
Tiberius - pulling the tail of the left AND right when needed
March 2nd, 2013
11:32 am
Bruno, what MarkV doesn’t realize is that the only sector that hasn’t “suffered”; i.e. taken any hit during this recession / non-recovery has been government workers.
Almost no layoffs, no drop in pay and virtual guaranteed employment while the rest of the country has experienced continuous 14%-18% unemployment for years or under-employment if they can find work.
And pity the poor government worker who hasn’t received a COLA in 3-5 years, and maybe now has to kick in 5% of their pay for benefits that have gone through the roof.
Why should government workers miss out on all the pain the rest of the country has been going through since 2008? Isn’t it all about equality for these libs – except when it comes to their own special interests?
Rafe Hollister preparing for an Obamanist America
March 2nd, 2013
11:39 am
– as long as those are not their belts and their jobs
If we had the same empathy for those who had done the responsible things in life and prospered, when they had their property confiscated by rising taxes. Yet, those people who advocate raising taxes do not care, because it is not their property and their hard work that is being taken.
As long as one group believes that there is nothing government can’t accomplish if given enough resources and the other group believes that government has not demonstrated that it is capable of effectively and efficiently handling the tasks it already has assumed, we are not going to agree.
For the first group it seems there is never enough, we just need a little more. How much more? When have we fulfilled our obligation to our fellow man? They never want to talk about that, just a little more right now. I am out of empathy for the perpetual “we need a little more”. The more they tax the more they spend. No program is ever a success, it just needs a little more revenue to be successful, we underestimated the need, is what we are told.
Rafe Hollister preparing for an Obamanist America
March 2nd, 2013
11:46 am
all the pain the rest of the country has been going through since 2008?
I thought we were in a “recovery”, the longest one since the FDR, non recovery. The recovery has lasted about 4.5 years, the recession about 8 months. Had we implemented the policies that have historically been shown to work in stimulating the economy, this would be in our rear view mirror. But, Obama had to emulate his hero, FDR, who failed to arrest the last great depression. IMHO
getalife
March 2nd, 2013
11:57 am
was dead wrong.
The turtle did not cave yet so the cuts started.
You can shut up about cuts and our economy now cons.
Time to work on the President’s agenda.
MarkV
March 2nd, 2013
11:59 am
Here comes Bruno (@ 11:11 am) with the display of his incompetence, self-importance and hypocrisy.
First, he starts with an insult (“jackasses like MarkV”). He, who complained of people insulting him.
Then the claim: “no one wants to see his fellow man suffering.” The omniscient Bruno knows what everyone wants or not wants.
And then clairvoyance of the self-proclaimed economic authority: “The Democrat plan to keep printing/borrowing more money is beyond irresponsible, and will only result in greater suffering later.”
Bruno
March 2nd, 2013
12:04 pm
But, Obama had to emulate his hero, FDR, who failed to arrest the last great depression. IMHO
As I’m sure you’ve figured out, Rafe, the Libs will never budge in their support of Keynesian economics. Not because it actually works, but because it sounds clever on paper and because it jives nicely with their world view that top-down, collective solutions are the only valid solutions possible.
KEITH
March 2nd, 2013
12:05 pm
lets see. people getting furloughed. people getting their hours cut. all the doom and gloom barry promised yet he had no problem spening over a million dollars to go play golf with tiger woods. that couldve paid a lot of salaries there barry.
Dusty
March 2nd, 2013
12:09 pm
Let’s make this simple.
FIRST you make a sensible budget in sequence with the amount of money that will be produced. If there is debt, payment to reduce that should also be included as part of the budget. .
Then you stay within the budget as it is written. No cheating, borrowing or layaway/credit purchases.
This is a very simple plan that will keep household and countries financially stable.
Don’t sneer at the simplistic. It works.
To defend the financial status of the present USA government is “defending the indefensible”. Don’t look foolish .by trying to do so.
getalife
March 2nd, 2013
12:15 pm
The gop protected the wealthy as usual so the cuts hit the middle class and poor.
You won self defeatists, now wallow in it.
Rafe Hollister preparing for an Obamanist America
March 2nd, 2013
12:18 pm
Keith
Having worked in government, I can assure you, Barry is secure in his assumption, that we are talking different pots of money here. In government, the main reason it is so wasteful, is that agencies do not have the authority to move money from one bucket to the next and an inter-agency transfer of money is as rare as a conservative democrat. So, once the money is appropriated by Congress it has to be spent for the things it was appropriated for. So one agency is buying new cars to replace the two year old ones they haven’t driven much, while another agency doesn’t have money to purchase basic supplies like pens and paper. So, Barry probably needed to spend down the inordinate budget he was given for travel, and he can’t transfer that to feed some starving family.
America governmental management is like the tax code, it desperately needs reforming, but we are two busy trying to take over people’s healthcare or provide kindercare for 3 year olds, instead.
indigo
March 2nd, 2013
12:20 pm
Bruno – 11:11 “enduring short-term pain is sometimes necessary”
So long as it’s not you suffering the pain, right twitie?
Bruno
March 2nd, 2013
12:20 pm
First, he starts with an insult (“jackasses like MarkV”)
MarkV–Let me break it down for you one more time. What qualifies you as a jackass is your inability to see things from any other perspective than your own along with your bad habit of ascribing evil intentions to anyone who doesn’t agree with your opinions. In case you were unaware, there is serious disagreement among economists regarding the efficacy of Keynesian economic policies. But, rather than acknowledging that there may be more than one valid, reasonable and compassionate point of view and course of action available, you attempt to dismiss anyone who disagrees with you by claiming that they just don’t care about anyone but themselves and that they (obviously) “do not even belong to this century and society.”
Maybe one of these days you can try building an argument using facts, figures and historical results instead of simply trying to disqualify anyone with a different opinion on the front end. But, that would require actual thought, something I’m not sure you’re capable of.
getalife
March 2nd, 2013
12:26 pm
Entitlements are not touched and the gop will try to weasel out of the military cuts but do not expect growth.
bluecoat
March 2nd, 2013
12:27 pm
I know the Pres & congress appoint members of Fed.bank but who makes the decision to print more money.I believe this bank to be a private bank.So who makes these decision?Give me an honest answere please,thank you in advance.