Sequestration is a procedure for limiting the federal government’s spending in the United States (Benson par.1). This procedure is entrenched in the United States’ constitution. Government spending in several of its departments are limited to a certain figure that is calculated based on the set principles.
If the Congress passes an annual budget that is higher than the set value, automatic regulations are instigated in all the necessary departments to ensure that the limit is not exceeded (Benson par. 3). The effects of these cuts affect all government departments with equal magnitude.
This process was reviewed and adopted through enactment of the budget control act of 2011. This was done iwithj the aim of averting the debt crisis that was looming in the United States. Although these measures have the capability of controlling the rate of growth of the debt, the harmful effects that accompany the regulations are lethal to the survival of the United States, its citizens, and the world economy at large.
To begin with, cuts in government spending on defense have a capability of destroying the United States’ economic stability across the world. The department of defense is a vital driver of the American economy (U.S. Department of Defense par. 3). Apart from providing the necessary secure environment for economic development, it is a major employer in America. It is estimated that over 1.5 million Americans will be rendered jobless if the automatic cuts are initiated in this department (Brown par. 2).
The American economy has just started recovering after a major global financial crisis in which America was worst hit with the highest levels of unemployment. During the time of recovery, it is estimated that over 4 million jobs have been created thereby lowering the unemployment rate in the United States (Brown par. 4). Budget cuts in the department of defense will result into massive layoff of workers. This will automatically increase the unemployment rate to alarming percentages.
The amount of money that will be withdrawn from the economy because of automatic cuts in spending by the department of defense is well above $85 billion (Brown par. 6). This is a very large amount of money to be withdrawn from the economy. Consequently, the economic development will be slowed down by about 25%. This has a capability of pushing the American economy into another depression (Eaglen par. 12).
Several manufacturing industries that are directly linked to the department of defense will be greatly affected. Apart from the destruction of millions of jobs, the revenues collected from the sell on the international market of these products will be greatly reduced (Eaglen par. 6). For instance, the American aerospace industry is the leading exporter in the world with up to $40 billion dollar profits annually (Eaglen par. 13).
The majority of these industries, whether local or international, are fully or partly owned by the government. Limiting expenditure will result into the closure of several of such industries thereby destroying the American economy (Eaglen par. 8). Based on the estimates of the number of American that directly and indirectly depend on this department, 4 million Americans will be exposed to economic hurdles if spending by this department is restricted to a certain figure (Eaglen par. 15).
The department of transport is yet another American icon that can be greatly affected by sequestration. This is one of the best transport systems in the world. It links most departments and hence propels a lot of economic processes (Eaglen par. 18).
The number of Americans who will lose jobs because of restricted spending by this department is very high. Most air transport systems will be shut down. This will seriously affect businesses. Moreover, a sector such as that of tourism is a major revenue source in America. It will be affected by initiating sequestration.
The department of education is another sector that will be significantly affected by sequestration. The government will be forced to seriously cut down on federal spending in the sector of education (Cross par. 1). Several education projects will stall due to lack of funds. In addition, several students who come from poor backgrounds will not afford education. This will seriously affect the educational standards in the United States.
Moreover, the number of Americans who work in this department in terms of teachers and aides are enormous. Reducing the numbers will result to an economic crisis on a large American population. This has the potential of affecting the quality of education in the country. Furthermore, people with disabilities will be greatly affected. Sequestration will limit the funds available for necessitating these services.
The number of teachers to help such students will be minimal as well as lack of enough funding to support such students. Affecting the education department processed has a danger of resulting to unfit professionals for the future American economy (Eaglen par. 7). in additon, the gap between the rich and the poor in America will continue to be broad since education is the only tool that helps in empowering the poor in the society.
The public health department depends on government funding. Since sequestration affects all government departments equally, the health department is at a greater risk. This is because it is concerned with the physical well being of Americans. To highlight some cases, the public health threat response department ensures that life is saved during critical emergencies.
Cutting down on spending will incapacitate this unit as most workers will be laid off and the equipment purchases will be minimized (Eaglen par, 14). In addition, the number of deaths resulting from drug use and abuse will increase immensely as the funds needed for running these processes will be lessened. Furthermore, HIV epidemic might reemerge, as the monitoring unit will not have enough funds to ensure correct data on the status of the syndrome is available (Eaglen par, 14).
Moreover, childcare and support will also be deeply debilitated. This is because of insufficient funds to ensure immunization processes are done. Poor developmental health will result to the government spending more in treating diseases that could be prevented by immunization (Eaglen par, 14). These will result to more losses, as managing health problems are more expensive than actual preventive measures.
The government has programmers that ensure most Americans are healthy. A program such as seniors’ nutritional program ensures healthier lifestyles thus longer life spans for Americans. Cutting down on expenditure on such an important initiative will mean reducing the life expectancy of most Americans (Eaglen par, 14).
Additionally, the current push for global environmental rehabilitation for sustainability of humanity will be harmed by the cuts in budgetary spending. Poor environmental conditions will result to degraded life standards and health of Americans. The government will incur more costs in an effort of dealing with health consequences resulting from degraded environmental conditions such as unclean air and water. Stalling government initiatives for a clean environment has ripple economic effects.
America has one of the best socioeconomic policies in the world. This policy target employed students and job seekers. Cutting down on government expenditures will directly affect millions of Americans who directly depend on government assistance in stabilizing themselves. The government subsidizes the living costs of many job seekers. This service will be ineffective if sequestration is implemented.
At the international level, America is an economic powerhouse that is depended on by almost two thirds of the word. Economic instability in America will result into an international economic crisis (Eaglen par. 15). Most countries directly or indirectly trade with America. Its neighbors such as Canada and Brazil greatly depend on America’s economic stability for their survival. Any economic glitches in America will have ripple effects on the world’s economic stability.
Sequestration, a technique that limits the amount of money in the American economy, will hamper several international economic processes. As much as it is seen as a way of reducing the debt burden on the government, it has a possibility of melting down the world’s economic prosperity, bearing in mind that America has international subsidiaries in most countries in the world (Eaglen par. 15).
In conclusion, sequestration is a lethal tool to the American economy. It affects all government processes negatively. These effects directly impact the American citizens in various ways. Some of these ways include unemployment, poor working conditions, insecurity, and poor social services by the government as well as food security. These effects have the potential of destroying the American economy (Eaglen par. 16).
On the other hand, debt reduction is the only major positive effect that accompanies sequestration. The effect of debt reduction can be short lived because a crisis might force the federal government to increase international and domestic borrowing (Eaglen par. 18). Since the effects of sequestration extend beyond America as a country, it should therefore be avoided at all costs as an economic step.
Works Cited
Benson, R. Sequestration: Separating Facts from Fear. 2013. Web.
Brown, C. Sequestration cuts would destroy U.S. economy Congress must not allow devastating cuts in defense spending. 2012. Web.
Cross, S. Potential Impact of Sequestration on Georgia Tech’s Federally Funded Research. 2013. Web.
Eaglen, M. It is not just defense cuts: Sequester would cripple our economy 2012. Web.
U.S. Department of Defense. Sequestration. 2010. Web.