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The '''Obama sequester''' was a proposal by [[President Barack Hussein Obama]] to Senate [[Democrat]] Majority Leader [[Harry Reid]] relayed by then [[White House]] budget director [[Jack Lew]] tocut [[entitlement]] and defence spending<ref>[http://articles.washingtonpost.com/2013-02-22/opinions/37238840_1_jack-lew-treasury-secretary-rob-nabors Obama’s sequester deal-changer,] By Bob Woodward, ''Washington Post'', February 22, 2013.</ref>  effective January 1, 2013. The idea was to break the deadlock over a [[federal debt ceiling]] debate in the summer of 2011 and "kick the can down the road" past the [[2012 Presidential election]] over ways to pay for Obama's [[stimulus]] spending and "[[healthcare reform]]" during his first term.

The '''Obama sequester''' was a proposal by [[President Barack Hussein Obama]] to Senate [[Democrat]] Majority Leader [[Harry Reid]] relayed by then [[White House]] budget director [[Jack Lew]] to cut [[entitlement]] and defence spending effective January 1, 2013. The idea was to break the deadlock over a [[federal debt ceiling]] debate in the summer of 2011 and "kick the can down the road" past the [[2012 Presidential election]] over ways to pay for Obama's [[stimulus]] spending and "[[healthcare reform]]" during his first term.

Critics warned Obama's [[economic planning|economic plan]] would create massive [[unemployment]] and a [[recession]]. Obama repeatedly claimed tax increases on the rich would pay for his plan, and [[Republican]]s compromised by voting for tax increases for the first time in two decades. As part of the deal, Obama's sequester cuts were delayed 60 days to avoid the inevitable [[fiscal cliff]] of his plan.

Critics warned Obama's [[economic planning|economic plan]] would create massive [[unemployment]] and a [[recession]]. Obama repeatedly claimed tax increases on the rich would pay for his plan, and [[Republican]]s compromised by voting for tax increases for the first time in two decades. As part of the deal, Obama's sequester cuts were delayed 60 days to avoid the inevitable [[fiscal cliff]] of his plan.

==What the sequester is==

==What the sequester is==

The Obama plan called for immediate cuts totally $85 billion to be divided equally between defence spending and programs such as [[Medicare]] and [[Social security]] for the remainder of fiscal year 2013. On the employment side, defence cuts are reflected in lost [[payroll]]s totalling half of the [[sequester]], or $42.5 billion; this is essentially $10,000,000 ''per hour'' in reduced payroll spending<ref>a classic picture of what is meant by the term, "economic contraction".</ref> by the federal government for individuals employed mostly as civilian contractors. Many will see permanent jobloss. A ripple effect, or "trickle down" effect will been seen soon thereafter in lesser paying retail positions.

The Obama plan called for the President to issue [[Executive Order]]s for immediate cuts totally $85 billion to be divided equally between defence spending and programs such as [[Medicare]] and [[Social security]] for the remainder of fiscal year 2013. On the employment side, defence cuts are reflected in lost [[payroll]]s totalling half of the [[sequester]], or $42.5 billion; this is essentially $10,000,000 ''per hour'' in reduced payroll spending<ref>a classic picture of what is meant by the term, "economic contraction".</ref> by the federal government for individuals employed mostly as civilian contractors. Many will see permanent jobloss. A ripple effect, or "trickle down" effect will been seen soon thereafter in lesser paying retail positions.

==Democrat plans for dealing with sequester==

==Democrat plans for dealing with sequester==

The Democrats are said to be planning calls for more extended unemployment benefits and [[infrastructure]] projects, which is of course, what the sequester is paying for from  Obama's first term. Infrastructure projects do nothing to solve the underlying problem of unemployment, leaving workers unemployed, again, once the project is completed or government funding runs out.<ref>There is a limit to how many highways, bridges, and public buildings can be built. And it is States and localities that must pay the cost of permanently maintaining them. Many states and localities are already struggling to maintain basic services like police, fire, and teachers. As [[FDR#Double_dip_recession|FDR]] discovered, "infrastructure" is just a campaign slogan that only prolongs the crisis and extends the suffering.</ref> Likewise, extended unemployment benefits do nothing to address the problem of job creation.

The Democrats are said to be planning calls for more extended unemployment benefits and [[infrastructure]] projects, which is of course, what the sequester is paying for from  Obama's first term. Infrastructure projects do nothing to solve the underlying problem of unemployment, leaving workers unemployed, again, once the project is completed or government funding runs out.<ref>There is a limit to how many highways, bridges, and public buildings can be built. And it is States and localities that must pay the cost of permanently maintaining them. Many states and localities are already struggling to maintain basic services like police, fire, and teachers. As [[FDR#Double dip recession|FDR]] discovered, "infrastructure" is just a campaign slogan that only prolongs the crisis and extends the suffering.</ref> Likewise, extended unemployment benefits do nothing to address the problem of job creation.

==Notes==

==Notes==

[[Category:Obama administration]]

[[Category:Obama Administration]]

[[Category:Man made disasters]]