2.2 Trillion Dollar Spending Cuts: Why Did The “Super Commitee” Fail??

| November 26, 2011 | 0 Comments

The Super Committee on deficit reduction.

It is no secret that the US spending on foreign wars, bailouts, along with spending on other domestic programs may have exhausted the US treasury. The nation is in a serious infrastructure and financial situation. The spending power of the dollar is dropping due to the increase in the national debt. Furthermore, the US needs a way to reduce the deficit already incurred, which means spending cuts or tax revenue increases, Or both. At this very moment Congress’ Super Committee has deadlocked the annual budget plan because of political polarization, in relation to which areas of government spending should be cut and who should tax revenue increases be placed on.

The Super Committee is a joint committee of 12 congressional members from each party created from the Budget Control Act of 2011. The Act called for a 400 billion dollars debt ceiling increase, increasing the amount of money the US can borrow. More importantly, the Super Committee’s recent failure to compromise will enable a 1.2 trillion dollars in automatic spending cuts, beginning in January 2013, along with an already in placed trillion dollars cut agreed upon in the bill’s enactment. A spending cut this big will cut spending in all areas equally between national defense spending and non-defense spending, but Medicaid, Food Stamps, Veterans benefits, Social Security, and other sensitive programs will be spared.

 

President Obama, in a recent conversation with Al Sharpton, believes that the Republicans should have sought better bipartisan resolutions that increase tax revenue on wealthier Americans, rather than allowing the fall back plan of only 1.2 trillion dollars cut to kick in. The President targeted Bush’s tax cuts to millionaires and wasteful program spending, as alternative methods to get the US budget under control. As of right now, the US debt is in the trillions of dollars, more than any nation in history. Questions are arising against Congress’ ability to balance the budget, pay a trillion dollar deficit, and improve the economy. Obviously pointing fingers will not fix the problem and only a consorted effort by both sides will help bring this problem to some type resolution.

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