Sequestration Negotiations

            With sequestration coming up, political forces are once again pushing all over DC. As usual, there is the common alignment of the Democrats backing their president, and the Republicans holding steadfast in their refusal to compromise with the White House on spending cuts and tax packages (CNN).  Interestingly enough there are divisions within the Republican camp regarding the automatic cuts. While the Tea Party portion of the House generally believes in their necessity, many more moderate Republicans are concerned about the effects of the defense cuts (WSJ).

This growing fissure within the Republican Party represents an interesting dynamic within the House of Representatives, where the Speaker himself is a moderate but must hope to galvanize and unite the more conservative Tea Party wing of his caucus.

Meanwhile the President is pushing Congress to agree to a deal. His approach of appearing the more reasonable partner in the negotiations has continued following the election (Reuters). The administration feels that the mandate it achieved with the reelection serves to place the Republicans on the back foot .

The results of the negotiations will have a tremendous impact on budgeting and the overall state of the US economy. Furthermore, they will be a likely indicator of relationships between Congress and the White House over the next four years.

 Sources:http://www.cnn.com/2013/02/22/politics/forced-spending-cuts/index.html?hpt=po_c1http://www.reuters.com/article/2013/02/19/us-usa-obama-budget-idUSBRE91I0EM20130219http://online.wsj.com/article/SB10001424127887323864304578318571638725986.html