The benefits, purposes and effects of Sequestration have been buried amidst political posturing by both Democrats and Republicans. The President said he cannot force them to find a solution. “I am the President, “I’m not a dictator,” he responded to such a question during a recent press conference. Now Sequestration has occurred and Americans may find comfort by looking at the nuts and bolts of why Sequestration is necessary and how it may help solve US financial woes.
When two voting factions have almost equal weight, trouble lies ahead. There are endless history books about the Civil War, when the North and South, also nearly equally divided, were unable to reach an amicable conclusion. The Electoral College aside, the popular vote in the recent US Presidential election is quite revealing. Governor Mitt Romney captured 47% of the popular vote, while President Obama was only 3 points ahead with 51%. And it is not uncommon for the two parties to disagree, as each party represents constituents who rest on opposite sides of many major issues.
Despite Party constrictions, the US budget can no longer wait for Party unity. In 2012, the U.S. revenue was $2.6 trillion with expenses of $3.7 trillion, leaving $1.3 trillion or 35% paid for by additional debt. Total debt for the United States is $16.6 trillion and growing. Polling data shows that Americans do not want cuts in Medicare, Medicaid, Social Security and interest of the debt, which in 2012 represented 65% of US revenue and are exempt from the current Sequestration in effect.
Given the political gridlock and the exemption from cuts of core areas that Americans want to remain unchanged, Sequestration looks like a good “first step” in the right direction.