Spending Cuts Threaten Economy

In this article, Governors expressed their views on how the impending budget cuts will more than likely stall the economic gains made from the recession. At the National Governors Association meeting, Republican and Democrats discussed their pessimism that neither side could find a way to avoid the spending cuts set to begin soon. They discussed the crisis between the White House and Congress and how this does not allow them to construct state spending plans and how this ultimately leads to local businesses refusing to hire new workers. The dispute comes after many states are planning on a financial comeback after the recession set in back in 2008 and 2009. An estimated $693 billion in revenues is expected for the 2013 budget year, which is almost a 4 percent increase since 2012. The cuts would trim about $85 billion in domestic and defense spending, causing hundreds of thousands of workers to be laid off and Defense Secretary Leon Panetta claims the cuts would harm the readiness of U.S. fighting forces. The cuts were never supposed to happen but were installed to force both sides to come together and come up with a better plan that both Republicans and Democrats can agree on. I feel both sides need to finally come together and focus the spending cuts while discussing the proposed tax increases in a way both sides would see benefits.




http://www.washingtonpost.com/business/as-automatic-budget-cuts-loom-nations-governors-urge-federal-officials-to-take-action/2013/02/23/86f0c3ba-7d94-11e2-9073-e9dda4ac6a66_story.html