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Kimberly Amadeo

The Effects of "Sequestration Friday"

By February 26, 2013

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Mandatory Federal budget cuts, or sequestration will probably kick in on March 1st. Although your world won't change too much when you wake up Friday morning, the impact over the course of the year could be pretty dire.

First, government spending is a component of GDP, so cuts will reduce economic growth, hurting job creation. Compounding that, Washington must approve the FY 2013 budget and issue the FY 2014 budget. It must also raise the debt ceiling in May.

If FY 2013 budget isn't approved by March 27, there could be another near-shutdown. The FY 2014 budget is normally published in early February. It's been delayed because uncertainty over sequestration and the FY 2013 budget make future planning difficult. The debt ceiling is usually raised without fuss. Instead, your elected officials are arguing over whether spending should be cut or taxes raised. Like bickering spouses, they are so caught up in who wins the argument that they aren't paying their bills. Who suffers? All of us.

And, this is the point of sequestration. The bickering spouses are trying to get your support for their side of the argument. Bit by bit, you will see services disappear.  For example, cutbacks in FAA personnel could delay flights by 90 minutes in major airports starting in April. Cuts in the National Parks Service could turn them into ghost towns this summer. More than 40% of the cuts are in defense spending. The White House has released a report that shows how the cuts will affect each state.

Hundreds of thousands of Federal employees will be furloughed for one or two days a week. That's time off without pay, which most private-sector employees experienced after the financial crisis, from 2008-2010.  During that time, Federal spending increased 19%, from $2.902 trillion to $3.456 trillion. This expansion was to stimulate the economy out of the recession, and it basically worked. The roughly 10% reduction from sequestration won't even take spending back to 2008 levels. Somehow the government provided services then, which is why many experts think the cuts aren't a big deal.

What It Means to You

Republicans and Democrats are counting on sequestration to show you how important the government is to your life. It's like the bickering spouses are trying to get the kids to take sides to win the argument.  Instead, tell them to stop bickering and get to work!

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March 5, 2013 at 5:27 pm
(1) Bill Heppe says:

I loved that you are thinking the same thing I am.

Whenever a budget issue comes up in government, management wants to make the taxpayer suffer losses while leaving their job intact. If you carry that argument to absurdity(as if it’s not already!) there is a government that has nothing to do.

I agree that we need to be patient and wait them out; they usually back down. Let’s keep in mind that they turned that aircraft carrier around…and warned us that, as a result, we are not as safe.

During the run up to the election the candidates debated on issues of entitlement; I think government workers are some of the most-entitlement conscious people on Earth.

March 7, 2013 at 1:22 pm
(2) Chan says:

Quote of the day : You (Americans) think if you throw money at a problem, you can fix it

-Quabad Talabani, son of Iraqi President Jalal
Talabani, on US funding to rebuild war-torn

Here what he is telling! Is he appreciating or making a ridicule statement
About US funding.This is quote appeared in published newspaper. He is referring for whole nation.give your thoughts about this Kim. Thank you.

March 7, 2013 at 4:39 pm
(3) Kimberly says:

Hi Bill,

I wish more voters were as involved as you are. Most government employees that I’ve worked with are conscientious and really want to serve their community. HOWEVER, they forget that every single dollar they spend is taken out of the pocket of someone who is working for a business.

Therefore, too much money gets spent WITHOUT ACCOUNTABILITY. The result is that a lot of good ideas get funded, but only the truly great and necessary ideas should get funded.

Most voters are bored and their eyes glaze over when you mention Federal Budgets. There’s a lot of misinformation about it.

HOWEVER, as we’ve seen in the recent debt crises, this is the most important thing the American people should do — tell your elected officials how you want your money spent. Before you can do that, understand how it is spent already by reading the budget, or at least a summary of the budget.

Hi Chan,

Sounds to me like he wants America to do something other than spend money. I don’t know what, though.


March 8, 2013 at 12:41 pm
(4) Chan says:

Hi Kim,

As you said too much money is spent without accountability, “This is exact problem world wide”. So the whole world money has to be spent wisely
Whether one’s own hard earned money or the public money.wastage has. To be curbed by the family and also by the government. As far as coming back to the quote for the day above by the son of Iraqi president he is telling for the Americans money alone could not fix the problem of any country along with it there should be social reponsibility, co-operation is needed with ubderstanding when dealing with the problem of the country
With all consensus of the people involved and it has to be thought twice or thrice before commencing the project and it has To be sensibly implemented resulting in well being of the public. I guess I explained well sensibly with this. This type of ubderstanding is lacking by the Americans.
When it comes to nation / international matters more co – operation is need by all the Americans together.It is lacking because there is majority people in America are immigrants.

March 15, 2013 at 3:12 am
(5) Chan says:

can I expect some kind of feed back to my 4th comments.

March 15, 2013 at 8:39 am
(6) Kimberly says:

Hi Chan,

Honestly, nothing really comes to mind.


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