What's really next for economy as sequester deadline hits?
What impacts can we expect to see?
- Duration 4:02
- Date Mar 1, 2013
What impacts can we expect to see?
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The president members of congress and federal agency heads have been warning us about has finally arrived.
But when will we really start noticing the belt tightening going on in Washington joining us now for more on this Susan free -- chief congressional correspondent.
For the Washington examiner.
So Susan you know I woke up this morning the sun was still shining Knight could still make it into work for the commute was just absolutely fine.
I thought this was doomsday if you if you listen to some of the talk coming out of Washington.
-- to understand what the sequester means you have to look at the numbers.
On the whole we're talking about 44 billion in spending cuts this year you know between now and the end of the fiscal year about seven months.
That amounts to about 1%.
Total across the board spending for military and non entitlement domestic spending.
That's really just a tiny amounts of for the domestic budget it's bringing things back.
Levels now think back to 2009 were you waiting at the airport for three hours were there fewer air traffic controllers now we weren't we weren't rolling along pretty well.
Find back in 2009 now for defense that's a budget cut that brings us back a little further to 2007.
Still the country remains secure.
We were defending ourselves oversees everything was going along just fine so if you look at the numbers that way it does make you wonder why AV.
White House is saying that we you know predicting gloom and doom at least they -- You know this past week and it also makes you wonder why if that this situation where that dire why is congress out of session right now why is this -- first day the president and congress.
Leaders have actually gotten together to even discuss the matter.
So I mean overall it's about 8% budget cut for domestic spending they have until the end of the year to realize those -- it doesn't mean that.
As of today are as of tomorrow suddenly you're going to have to furlough people it takes at least thirty to sixty days.
-- -- a federal employees so we know we have some time.
On the other hand you know federal workers are getting notices the warning notices about losing jobs are part of their pay.
So that is not something to just brush off or take lightly I think overall you have to look at this is a gradual thing.
At the very -- and very potentially something that was exaggerated at least initially by the White House yeah I don't want to make.
Light -- it for those federal workers especially on the civilian side who.
Do face the potential of furloughs -- or job cuts as a result of all this.
But it's not going to happen immediately I mean the way the president is and some of his cabinet workers cabinet leaders sold this.
You would have thought that you know again the end of the world was here as of today.
Well this -- this is a strategy that has worked in the past for the White House they have successfully been able to get their way on some of these big budget battles.
-- kind of taking things out of -- -- campaign trail getting the public to rally behind them.
And this case one waiting for smaller -- are really holding their ground on not wanting a tax increase to offset the sequester.
So that this more stubborn in their minds that they believe the Republicans are getting.
I think the more.
Dramatic the White House -- gotten in trying to get folks to really.
Believe that this is going to be a doomsday Armageddon kind of thing.
In that sense they -- they could use that leverage.
To get the Republicans to sort of cave in at the last minute agreed to this new revenue which of course it would be another tax increase.
So -- that's not working and that's where things get interesting.
You know this could backfire and the president if there are long lines at the TA TSA how to -- you know the public is not gonna think that the federal government.
The White House is doing this on purpose there's always that risk -- -- a lot of the reporting.
Even mainstream -- begin -- question.
Whether the White House is exaggerated this or whether they have more flexibility -- they say they do.
On how these cuts are enacted and now we've got with this showdown at the White House right -- -- photo -- if you well.
But it's the beginning of what will be a showdown over the -- and of course it's going to drag on I think -- the entire month of march we will be talking about it for a while Susan preach you know from the Washington examiner.