(By Deutsche Welle) US President Barack Obama has signed an order that starts putting into effect across-the-board budget cuts known as the “sequester” after he and congressional leaders failed to find an alternative budget plan.
Huge spending cuts will start to hit the US starting Saturday after President Barack Obama and congressional Republicans failed to find a compromise budget. Obama signed an order authorizing the cuts Friday night, officially enacting the across-the-board reductions.
With the series of automatic spending cuts, Democrats and Republicans are playing a game of political chicken, with neither party willing to compromise in the latest round of America’s 18-month-old fiscal drama. A last-ditch round of talks between President Barack Obama and congressional leaders ended without a breakthrough. After the talks Obama described the cuts that now have gone into effect as “dumb” and “arbitrary” and warned of the negative impact on the economy and jobs.
The $85 billion (65 billion euros) in across-the-board cuts for fiscal year 2013, called sequestration, will equally impact both defense and social spending. Another $1.2 trillion of austerity will then set in over the next decade. Designed originally as a strategy to intimidate hyper-partisan members of Congress into a compromise on taxes and spending, sequestration was never actually supposed to become reality.
But now, both sides of the political aisle are pointing fingers as Washington prepares to fall on its own sword.
“Unfortunately, it appears that Republicans in Congress have decided that instead of compromising – instead of taking anything from the wealthiest Americans – they would rather let these cuts fall squarely on the middle class,” US President Barack Obama said in his weekly radio address on Saturday.
Having already agreed in January to postpone the sequester by two months and raise taxes on families earning more than $450,000, many Republicans are unprepared to meet the president’s demands on revenue this time around.
“Most Americans are just hearing about this Washington creation for the first time: the sequester,” John Boehner, speaker of the House of Representatives, wrote in a Wall Street Journal editorial on February 20. “What they may not realize from Mr. Obama’s statements is that it is a product of the president’s own failed leadership.”
According to Ron Haskins, an expert on budget issues at the Brookings Institution in Washington D.C., the parties are unwilling to forge a bi-partisan agreement on austerity because they would be held politically accountable by their constituencies for the economic pain. So they are increasingly prepared to let the sequester go into effect and try to push the blame on their adversaries.
“I don’t think they have really made a rational calculation,” Haskins told DW. “I think that probably the main element in their thinking is that they can blame the other team – that’s what they’re hoping.”