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Global Poverty

What is Sequestration?

Sequestration

Se·ques·tra·tion (n) /ˌsēkwiˈstrāSHən/: a four-syllable word that hasn’t been part of average American vocabulary for long. Now the term is ubiquitous, even blamed for a vast number of completely unrelated problems. High gas prices? Must be sequestration. Long wait time on a business license? Probably the sequester. Got a flat tire? That darned sequester is to blame.

So what is sequestration? Etymologically speaking, the verb “sequester” itself derives from the Latin sequester which meant “trustee” or “mediator.” It has links to the root sequi (“to follow”), but by the early 16th century the word “sequester” meant “to seize by authority, confiscate.” Today “sequester” also carries a similar meaning to “isolate” or “withdraw.” In budget contexts, sequestration implies withholding funds normally disbursed.

For the United States government, the Sequester was a massive set of budget cuts enacted by The Budget Control Act of 2011. This Act contained provisions that if the United States Congress could not formulate and pass a federal budget by a certain date, these massive budget cuts would occur across most departments and agencies (about 50/50 between defense and domestic spending). Other countries have proposed and enacted similarly drastic spending cuts to balance their budgets, but have typically called those measures “austerity policies.”

Congress’s threat of sequestration was supposed to incentivize compromise on reducing the deficit in the federal budget. After all, those who support a large defense budget would hopefully work harder to come up with a budget to keep this funding intact; those who support high amounts of domestic spending would fight tooth and nail to pass a budget to avoid those cuts.

Multiple attempts to compromise were made on both sides of the aisle, but in the end, Congress was unable to agree, and the government plunged over what many called “the fiscal cliff.” Many saw this as the point of no return for Congressional compromise — or, rather, the lack thereof; others winced at the blunt nature of the cuts but expressed support for the step towards a balanced federal budget. For invaluable foreign aid programs, however, the sudden budget cuts threaten to hurt many more people than just Americans.

– Naomi Doraisamy

Source: CNN,Online Etymology Dictionary,USA.gov
Photo: Esibytes

June 16, 2013
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