There are many reports in the media about how the United States economy is growing, and businesses are again hiring. Many people, however, are having the opposite experience. Many in Congress and big business believe sequestration to be an effective way for the government to manage its out-of-control debt, but there are those who see things quite differently.
Nanocerox is a military contractor in Ann Arbor, Michigan. During the past year, the Chief Executive Officer has cut his workforce by at least 30 percent. According to him, even these cuts have not been sufficient to satisfy the government mandates, so he will be forced to lay off more people in the near future. Sequestration supporters say that this is necessary for economic recovery, but it is unclear how creating more unemployed people will bring this recovery about.
While the government helps the largest corporations by tending to their economic needs, who is looking out for the needs of the average citizen? The jobs that are lost to satisfy the cuts mandated by Congress can only translate into less consumer spending and less tax revenue. Quite often, there is a large increase in the number of people applying for bankruptcy protection. This may be viewed as 'progress' by those in the government, but not so much by those at the other end of the spectrum.
Meanwhile, reports from the White House indicate that unemployment rates are down and job creation rates are up. How this happens while sequestration cuts are taking place is an interesting paradox. It is important that our legislators remember that the people whose jobs they are excited about cutting in their quest for deficit reduction are the very people that they count on to buy houses, cars, college educations and basically be good consumers. Those who were actively working and spending their money are now forced to tighten their own budgets.
Although there is no bail-out money available for the workers who are victims of federal, state or local budget cuts, there is help available. The unemployed in Michigan can receive assistance with debt reduction and, if needed, bankruptcy protection. Until the economic recovery that the media is reporting filters down to the average citizen, getting help in protecting what you have is often the best option available.
Source: MSNBC/Maddowblog, "Obama hopes to keep economy in national spotlight," Steve Benen, May 10, 2013