After months of debates, meetings, speeches, threats and desperatewarnings of a US government debt default, Congress finally gave and passed another massive debt ceiling increase president Barack Obama signed into law.After the signing of the debt ceiling, what are the specific spending cuts proposed by Congressional members? This new agreement of spending cuts mentions no named governmental programs that covered the last eight years that created this weightless spending machine of so called civil service. Which programs and agencies will be slashed and how much covered?
The passage of the new debt ceiling has made it tough to tackle the unemployment rate that keeps growing under this current administration. Congressional members that voted to cap part of the debt ceiling spending will drastically affect infrastructure domestic construction projects to rebuild highways, bridges and airports that are in need of upgrades and repair.
These targeted domestic projects will result in billions of dollars in savings over the next ten years, will slow economic growth delaying infrastructurerepair across the nation that are in need of mending. This is precisely the type of discretionary spending Congressional leaders voted to cap as part of the debt ceiling law.
The Economic Policy Institute (EPI) stated that “domestic cuts will kill at least 323,000 jobs in 2012 alone.” Domestic cuts debt limit will definitely lower economic growth preventing new employment during the next several years increasing rising unemployment instead of job and capital gains. The hope for a robust regrowth just went South by making domestic cuts law.
According to reports, the debt ceiling law does not provide itemize cuts, instead leaving those decisions to the federal government to set an amount it deems appropriate. Because of the size of the debt ceiling and the size of reductions needed to bring spending under control makes it inevitable they will have bearingon a long list of discretionary programs, including those related to environmental protection, food, education and infrastructure as these are the easiest hit largely because the bill doesn’t specify the discretionary cuts.
The government will continue to spend itself finally landing into bankruptcy. Besides raising the debt ceiling by $2.1 Trillion, Congress promise of savings over a 10 year period followed by additional savings of $1.2 to $1.5 Trillion to be determined by a new 12 member congressional committee.
Here’s a list of federal social programs Congress estimates trillions of dollars will be saved over the next ten year period as the law does not appropriates how cuts will take effect:
Government Benefits – career development assistance, child care/child support, counsel/counseling, disability assistance, disaster relief, education/training, energy assistance, food/nutrition, grants/scholarships/fellowships, healthcare, housing, insurance, living assistance, loan/loan repayment, medicaid/medicare, social security, tax assistance, veterans – active duty, volunteer opportunities.
Disability Direct –job, health and housing.
FAFSA– student financial aid, school loans, funding education, federal student aid.
FEMA – U.S. Depart of Homeland Security
Food and Nutrition Service – supplemental nutrition assistance program, women, infants and children, farmers’ market nutrition program, senior farmers’ market nutrition program, school meals, national school lunch program, fresh fruit and vegetable program, school breakfast program, special milk program, team nutrition, summer food service program, child and adult care food program, food assistance for disaster relief, food distribution, schools/child nutrition commodity programs, food distribution program on indian reservations, commodity supplemental food program, the emergency food assistance program
Homeless Assistance– U.S. Department of Housing and Urban Development
Housing Assistance – U.S. Department of Housing and Urban Development
Insure Kids Now – Children’s Health Insurance Program (CHIP)
Medicaid–U.S. Department of Health and Human Services
Medicare – U.S. Department of Health and Human Services
Social Security– U.S. Social Security Administration
Supplemental Security Income – Supplemental Security Income (SSI)
Unemployment Insurance–U.S. Department of Labor
Veterans Affairs–The U.S. Department of Veterans Affairs (VA)
Welfare Reform – U.S. Department of Health and Human Services Administration for Children and Families
Energy Assistance – Low Income Home Energy Assistance Program
In the end, the Republicans held the upper hand in this debt ceiling fight and could have insisted on a much better deal. With no end of spending in sight unless conservative Tea Party Congressional members can combat the same energy from 2011 in the 2012 election, we will continue down this road to a total monetary collapse.
The opinion expressed in this commentary
article are solely those of Michael Coker