Americans are a lot better at belt-tightening than the people they send to Washington.
As Americans’ income fell by 3.6 percent in January,
President Obama and Congressional leaders were warning of the dire consequences of sequester, the budgetary booby trap that forces cuts of as little as a third of that from the mammoth federal spending plan. Working stiffs sucked it up and absorbed the biggest monthly drop in income in 20 years, while the elected officials insisted that the federal budget had no fat to trim.
Financial planning experts say if Americans can take such a big bite out of their paychecks, Washington should be able to weather a similar cut, percentage-wise.
“If you compare [the sequester cuts] to sacrifices a regular family has had to make, you’re talking about the money you find in your couch cushions.”
- Larry Winget, best-selling author
“If you compare [the sequester cuts] to sacrifices a regular family has had to make, you’re talking about the money you find in your couch cushions,” said Larry Winget, the best-selling author of “You’re Broke Because You Want to Be.”
“When regular folks need to cut the household budget, they get rid of their toys, their cable TV, eating out,” Winget continued. “If they can make those kind of cuts, the federal government ought to be able to.”
The sequester cuts were put in place more than a year ago as a means of forcing lawmakers to come up with a better cost-saving solution. President Obama famously said during a debate with Mitt Romney that they would “never happen.” But as the deadline drew near and it became clear that no deal was in the offing to head off the cuts, sober warnings emerged from the nation’s capitol. Some 800,000 Pentagon workers would be furloughed. Thousands of illegal aliens would have to be freed. Teachers and firefighters would be laid off.
Read more: http://www.foxnews.com/politics/2013/03/01/americans-absorb-36-percent-pay-cut-while-washington-fights-over-sequester-647959305/#ixzz2MJjtsfoT