Anyone who knows me these days recognizes the sequestration topic is one that I am extremely passionate about.
Let me address a few issues in regards to sequestration that most concern me, the Executive Director of the Havelock Chamber of Commerce. Earlier this week, the Deputy Secretary of Defense, Ashton Carter, laid out plans for the sequester. The one to be felt immediately by the community will be the furloughs of the civil servant. One day a week for 22 weeks. This is a cut in pay of 20%. Some are mistakenly thinking this will on cause a 20% reduction in spending in the area. No, for many, the 20% cut is the 100% of the discretionary spending of many of these civilian workers. This means no eating out, no buying a new car (or a used one), no new clothes, no new furniture, no new carpet...do I need to continue. Here is the other kicker, just because the civil servant is working one fewer day each week, it does not mean his benefits premium is going to change.
70% of the total US Economy is dependent on spending. For FY 2011, total federal employees not including uniformed military personnel was 2,904,300. Although it has been said on 800,000 employees will be affected. How is a 20% cut in the paycheck going to affect the US Economy?
Next issue that concerns me greatly, military readiness. Outgoing Secretary of Defense Leon Panetta spoke at Georgetown University on Wednesday. He said:
"We're going to cut
back on Army training and maintenance, putting about two-thirds of our active
brigade combat teams outside Afghanistan at a reduced readiness level. We've
got to cut back on their training. We're going to have to cut back on the
ability to support the troops who are not in the war zone. So what happens is
we put more stress on those who are in the war zone.
We're going to have to
shrink our global naval operations with a reduction of as much as one-third in
our western Pacific naval operations. This whole idea about trying to rebalance
will be impacted.
We'll cut the Air
Force flying hours and weapons system maintenance, putting flying units below
acceptable readiness standards by the end of the fiscal year.
This is not a game.
This is reality. These steps would seriously damage the fragile American
economy, and they would degrade our ability to respond to crisis precisely at a
time of rising instability across the globe -- North Africa to the straits of
Hormuz, from Syria to North Korea. We would have no choice but to implement
these kinds of measures if Congress fails to carry out its basic responsibility
to the American people."
Where is all of the outrage from not only the American public but the Havelock community? Why are we allowing this to happen? The military and military readiness is our way of life and we should do everything to protect it.
Contact our elected officials today.
Congress Walter B Jones Phone: (202) 225-3415
Senator Richard Burr Phone: (202) 224-3154
Senator Kay Hagan Phone: (202) 224-6342
I am sure you will hear more about my passion in the days and weeks to come.
Stephanie Duncan
Executive Director
Havelock Chamber of Commerce
Furloughs begin July 12 for FRC-East employees. FRC-East will be closed Friday, Saturday and Sunday beginning July 12. I have been thinking a lot about the furloughs and how it is going to affect local businesses. However, the furloughs effects is bigger than local businesses. Has anyone done the calculations for the loss in tax collection revenue? The furloughed employees are going to be paying less in payroll taxes - federal and state, less in sales tax because they are going to have less money to spend, less in gas tax - because they are going to be driving less. How does this trickle down? If they are spending less, the local businesses might have to cut employees. Those employees are paying less payroll taxes, less sales tax, less gas tax. 
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