Tag Archives: sequestration

Sequestration

dollarsignLately, you might have heard the term, “sequestration” in the news.  You might also be asking yourself, “What is sequestration?”  Sounds like a serious term.  It is a serious term and the act itself will have serious consequences on the nation’s economy.  In simple terms, sequestration is the act of instituting automatic spending cuts to the nation’s budget.
Sequestration takes places when a Congressional spending cap has already been reached.  Once the budget cap is surpassed, then sequestration is implemented.  The problem?  Congress has avoided sequestration by constantly raising the budget caps that they already put into place.  This is not how you are supposed to avoid sequestration.  If Congress would stop the rate of spending, then they would not have to implement automatic budget cuts. Avoiding sequestration in this fashion only causes more of a spending problem in the United States, and also adds more to the nation’s debt.
If you were in Congress and sequestration was put into place, what program, either foreign or domestic, would you automatically cut from the nation’s budget?