WDEL Blog: Allan Loudell

On the brink of Sequester: Will the immediate impact be a whimper?

Here we are at the end of the month, at the brink of sequester.

Perhaps it will not be as dramatic as first advertised.

On the other hand, you don't want to be in a state where the military and military contractors are pivotal to that state's economy. By that calculation, Virginia's Republican Governor Bob McDonnell must be breaking out in cold sweats.

Here in Delaware, of course, we've got Dover Air Force Base.

And New Castle Airport and the Salisbury-Ocean City-Wicomico Regional Airport may have to function without manned control towers.

But consider this piece from NATIONAL JOURNAL:

"The Overhyped, Overblown, & Overly Politicized Sequester Fears"...


Posted at 9:31am on February 28, 2013 by Allan Loudell

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Comments on this post:

Thu, Feb 28, 2013 9:39am

Cutting $85-billion from the multi-trillion dollar budget we have now is like getting stung my a mosquito, and then worrying about going to the Emergency Room to have your arm amputated. These cuts are relatively nothing, compared to what really NEEDS to be cut over the long term, so we are not constantly borrowing money from China to stay afloat.

Let the sequestration come, and be grateful they're finally cutting defense spending, even though the Pentagon cuts are only a small step in the right direction. We have thousands of nuclear warheads designed to fight a Cold War that no longer exists. Cut it now!

Thu, Feb 28, 2013 10:19am
Bob Woodward on Wednesday accused President Barack Obama of acting with a “kind of madness” in his handling of the automatic spending cuts set to take effect Friday.


Bob Woodward: ‘Very Senior’ White House Official Warned Me I’d ‘Regret’ Attacking Obama Over the Sequester.

Mike from Delaware
Thu, Feb 28, 2013 10:43am
Doesn't Dover AFB have Air Force traffic controllers in their tower rather than the Civilian Fed Union Air Traffic Controllers?

As far as the New Castle Airport, as it does not have commercial air service its closing won't have a major impact on the general public. Maybe Dover could spare one of their air-traffic controllers to keep the Del Air National Guard operational when flights are needed. Other than that, New Castle Airport is simply an airport for corporations and rich folks. So now they can go to Philly or Baltimore like the rest of us.

Of course, with the defense-spending cut part of the Sequester, the Pentagon might not see Dover and definitely NOT the Del Air Guard as vital to the nation's defenses and could make some serious cuts at Dover and just shut-down the New Castle Tower, thus closing that airport as part of its cost-savings measures.

Also what about the Port of Wilmington? I'm assuming there are Federal inspectors and Fed cops or whatever for home land security, etc. Those two might be cut-back as Wilmington is a minor port-of-entry compared to Philly, NYC, Baltimore, etc.

Thu, Feb 28, 2013 12:27pm
This has been so overblown. The cuts are for the future, over 10 years. Nothing is "going over the cliff" tomorrow. That is only when the voters realize how out-of-touch Obama really is as their leader.

For the military, a real blow does hit near the end of March. The DoD is operating on a Continuing Resolution. If that is not renewed, all military spending stops. Suppliers who have the military as customers will not be paid. That will be far reaching in its effect.

Thu, Feb 28, 2013 7:34pm
We should also remember that any furloughed employees will be receiving full or partial unemployment, and I understand that could be for up to 99 weeks.

Fri, Mar 1, 2013 9:43pm
Sequestration will indeed be painful, intentionally painful. Our government could easily absorb the miniscule "reduction" but to demonstrate just how important government is to the public we will see important government services cut rather than the countless number of completely useless and wasteful portions found in any large bureaucracy.

Sat, Mar 2, 2013 3:55am
However, with all that said and done, one has only to look at 1937, and see the same thing happening now, as it happened then.

Then, the economy according to all indicators, looked like the Great Depression was ending. Just like now, the economy grew just in time to thump Republicans in the poll for Roosevelt's second term. Just like this time, even in summer, many expect Roosevelt to be a one-term president....

In fact there are more uncanny resemblances with the Great Depression than ever get mentioned. What happened in 1937, was the excess spending of the New Deal, was dealt back by Roosevelt and Congress. Feeling was they needed to cut the deficit now that the economy was roaring again. Perhaps because everyone had been through the drill before, cutbacks came swiftly in the private-sector to match those in government. Manufacturing fell 35% in that year. Unemployment which had come down from 25% to 14%,.. shot back up to 19%.. The stock market, which in 1937, had just past the record it held in 1929, was down to half its value a year later... a 50% drop!

Bottom line, there was no depth on the bench. You took out a major player - the government - in driving the economy, and the rest of the team, couldn't make the points...

If the comparison holds tight, we will see no changes until August, and then September through December will be quite a ride. It will be blamed on the sequester, and that blame falls right into the lap of Republicans, whose policy caused the next major recession...

But, sometimes things do not happen exactly as they did, even though all the indicators point in that direction... We shall see.

Sat, Mar 2, 2013 4:27pm
Overall, the effect of the sequester is we are tired of it. We understand no one knows what will happen, and just like all the hype leading up to the Superbowl, commentators start repeating the same stuff, because there is nothing new to report....

I remember it was sort of the same with the Iraq War build-up and posturing about whether to or not to attack being done by all sides... I remember then too, being so tired of it, and deciding well, let's just get it over with, and deal with the consequences... I'm guessing America sort of feels the same, based on the feeling of inevitability everyone sort of has as we approach this....

It's time to move on and after the battle, we can then, tax the wealthy the amount that is finally fair....

Tue, Mar 5, 2013 11:03pm
I wonder if the president ever heard the children's story about a little boy who cried wolf?...or maybe Chicken Little?

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