The White House Releases State-by-State Analysis of the Sequester

White House South Lawn, Blue Sky, Washington, DC, USAIn an effort to up the ante on budget cut battles with Congress, the White House has released an analysis of state-by-state effects. The release may rally governors to the side of the president, although many of the numbers are no better than a guess. They do not take into account the ability of states to repair their own economies, even if federal aid drops. And, as it true with all other budget estimates, the period over which harm will be done ranges from weeks to months to years.

BusinessWeek reports:

Federal budget cuts will probably push the U.S. back into recession by damaging states' economies recovering from the worst fiscal crisis since the Great Depression, governors said.

President Barack Obama and Congress need to find a way to prevent $85 billion in across-the-board spending cuts from taking effect starting on March 1, said Republican and Democratic governors who are in Washington this weekend for a meeting of the National Governors Association.

The cuts, known as sequestration, will lead to dismissal of teachers and firefighters, and reduce projected spending by $1.2 trillion over the next nine years, with half in defense spending and half from domestic spending. Governors said the threat of cuts has already damaged their economies, which they said will worsen if the president and lawmakers can't agree.


Filed under: 24/7 Wall St. Wire, Economy, Politics

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margheritavill

The so called President is out to destroy us. We should demand a major investigation on this man for his way of underminding the United States. He likes to party on our money and blame the Republicans because he won\'t work across the table. He is the worst President ever --- Carter must be happy to be removed from that title

February 27 2013 at 8:48 AM Report abuse +1 rate up rate down Reply
crazedhare

Doesn't anybody care about the people who will suffer the most from these kinds of cuts? Don't they realize that if they don't help these people now it will cost them a lot more later? Why is that people are only interested in short term solutions with no eye to the future?What about all those older people that will be squeezed out and be unhirable because they are considered too old to work but too young to retire. This will become a nightmare if something isn't done. Our economy in the past was never prepared for this many old people living so long, and no one seems to be facing that fact that past economic models no longer apply. It seems there will always be greedy people who want more. We need all need to wake up and share the burden without losing our freedoms. The middle class and the disenfranchized have become nothing more than a football in the whole mess. Just because the Democratic ploy is a tactic doesn't mean there is no merit to the point being made. It is however being made on the the future of our youth (education) civil protection (Remember the anarchy that followed Katrina? what if a real disaster struck the country, bring in the army instead?) Unemployment ( people that are now considered too old to hire and too young to retire) The Republicans and Democrats have become so dichotomized you may as well be talking about two religions, and the future of outr country is being compromised by it. America needs to wake up.

February 26 2013 at 12:29 PM Report abuse -1 rate up rate down Reply
TJ

Hmm so lets get this straight. The economy was never fixed by the so called president because if he doesn't throw printed money at it then it collapses. That just proves he has done nothing in the past 4 years other than support his rich friends that paid for his election. What a fake!

February 26 2013 at 9:34 AM Report abuse -1 rate up rate down Reply
1 reply to TJ's comment
margheritavill

You are right. He lies and blames that is what his administration is good for -- lie and blame.
We the American People should demand an impeachment investigation should begin. He is screwing us more than what Clinton did to all his ladies and we wanted him impeached.

February 27 2013 at 8:50 AM Report abuse +1 rate up rate down Reply
jet9341

Maybe if the white house spent time actually working on a solution instead of spending their time letting each State know what they could lose and politicize it in the meantime...something would get done.

February 25 2013 at 4:08 PM Report abuse +1 rate up rate down Reply
1 reply to jet9341's comment
margheritavill

you are right

February 27 2013 at 8:51 AM Report abuse +1 rate up rate down Reply