Sequester Panic: The Sky is Falling! (NOT)

Sequester is not something new, contrary to what pundits may claim.  In fact looking at a 2010 Congressional Research Report, one finds that in the past 40 years sequesters and government shut-downs have happened more then one would believe.  Between fiscal year 1977 to 1980 there was 6 funding gaps resulting in government shutdowns ranging from 8 days to 17 days.  The fiscal years of 1981 through 1995 saw 9 funding gaps and government shutdowns.  In 1996 under President Clinton there was 2 funding shortages resulting in shut-downs which were 5 days and 21 days in duration.

So why do these shortages and subsequent shutdowns occur?

Primarily they occur because:

Congress and the President did not enact regular appropriations bills by the beginning of the fiscal year. They also have occurred when Congress and the President did not come to an agreement on stop-gap funding through a CR.

So do not be fooled, this is nothing new or even out of the norm.  During previous cuts in funding or shutdowns have not resulted in Armageddon results, if anything it typically slows spending.  Even the current sequestration does little to in relationship to the massive yearly deficits we are amassing.  The sequester cuts future spending by 2 cents for every dollar the federal government spends.  Lets be honest, if the nation cannot bear cutting 2 cents from every dollar in spending, then we are in much worse fiscal shape then we have been told.

 

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