- Post 20 February 2013
- By Atlanta Daily World
- Hits: 252
A Wells Fargo analysis declares Georgia is at "high risk" if sequestration hits March 1, primarily because Georgia is among second tier states with the most exposure to federal spending cuts.
Business Insider defines sequestration as an obscure budgetary term used to explain a type of process to create spending cuts.
The analysis mentioned Georgia's federal spending makes up 6.9 percent of the state's gross domestic product in 2012.
To prevent sequestration from taking place will take congressional action and Federal spending cuts across the board.
According to USA Today, President Obama looked to Congressional Republicans to circumvent $85 billion in "automatic, severe" budget cuts.
"Cuts won't help the economy," said Obama.
"Smaller towns that host large military bases are probably the most vulnerable areas in the sequestration battle because so much of their economic wellbeing is tied to the continued flow of defense dollars. Georgia is home to three such areas: Columbus, Warner Robbins and Hinesville," noted the analysis that revealed the three areas where Georgia is most vulnerable.
The Atlanta Business Chronicle reports the cuts will reduce public services that will lead to the layoffs of teachers, reductions in the air traffic control systems, furloughs of FBI agents and a compromised military.
Further discussion on sequestration and impending cuts will resume Feb. 25 when congressmen return from their recess.