During the last week we have heard from many politicians about the draconian cuts in spending known as the “Sequester”. The mandatory spending cut is 85 billion dollars for the upcoming fiscal year. The Obama Administration just completed raising revenue of 62 billion dollars. There is no real intent from our elected officials to cut spending because we are going to be running a trillion dollar deficit again this year. The cuts are only 8% of our deficit spending and roughly 2.5% of our overall budget with most of them coming from the defense budget.
A better solution to minimize the impact to the defense industry, which effects the whole economy, would be to cut spending across other sectors that have less of an impact. A few examples that would have less impact would be foreign aid, farm subsidies, energy department, etc….. The “Sequester” will not achieve the goal of a balanced budget. We believe the Obama administration must cut spending, stop creating debt and pay down our obligations around the world.