Sequestration of the Obamas Budget - Essay Example

Both parties agreed that approximately $1 trillion to be cut from the federal government; however, they did not agree on the next steps to salvage the nation's fiscal budget (Genovese, 2010). Moreover, some quarters proposed the increment of the national borrowing toward creating defaults that could have emerged from the damages of the Sequestration.

Borrowing from the Reagan era law, there was an argument that there was needed to achieve goals including raising the borrowing limit but improving the national fiscal standing (Genovese, 2010). The sequestration idea is simple; it only calls for scheduling automatic cuts for the future national budgets. However, Sequestration may be harmful to everyone; therefore, congress should implement better and smoother cuts before implementing Sequestration fully (Genovese, 2010). Sequestration was planned to start this year but lawmakers have delayed it; nonetheless, it is expected to take effect this month.