Congress might actually cut spending, by doing nothing. That is what will happen
if the automatic spending cuts (known as sequestration) take place March 1.

A little history is in order. The idea of sequestration was proposed and promoted
by the White House during the 2011 debt-ceiling negotiations. The political calculus was
that liberals would not allow draconian cuts in domestic spending. Conservatives would
not allow massive cuts in defense spending.

The threat of sequestration did not work. We are now just a little over a week
away from those automatic cuts. We are told that if Congress doesn’t act, these cuts will
threaten jobs and the economic security of the middle class.

Let’s inject some reality into these dire threats. The cuts from sequestration are
not even close enough to balance the budget. Two weeks ago, the Congressional Budget
Office released its forecast that took into account all of the sequestration cuts. The report
projects that the national debt will exceed (101%) the Gross Domestic Product of the
U.S. by 2030.

Put another way, we as Americans have problems even if these so-called
draconian cuts take place. Yes, there will be some pain. Yes, the federal government will
have to do some belt-tightening. That is what you get when you spend more than a
trillion dollars every year than you bring in through revenues.

These cuts will affect domestic programs. Agency heads will most likely close
down the most visible and popular programs in order to get a public outcry against
sequestration. These cuts will also force tough decisions in defense. Nevertheless,
defense spending would never fall below the 2007 levels and still grow from there.

One commentator estimated that the defense budget would be cut by $50 billion a
year. While that is a significant cut, remember that the federal government spends $10
billion every day. A cut of $50 billion is essentially five days of the federal budget.

If sequestration happens, it won’t be the end of the world.