The Obama Austerity Package

Even I failed to anticipate that the end of February would approach and the president would make no serious effort at preventing the March 1 budget sequestration from taking effect. At the end of January, we noticed that, with sequester included, the United States was prepared to see an austerity package 1.9% the size of GDP in 2013, more austerity as a share of the economy than was seen in Britain in 2011 or 2012 (though not both combined). What’s important to note is that, despite Obama’s recent token effort to get congress to repeal or further delay sequestration, which accounts for $78 billion of the $304 billion in spending cuts and tax increases planned for this year, all of this is his fault and his fault alone. Read the rest of this entry »