The deadline for the Super Committee to come up with 1.2 Trillion in budget cuts has passed without a deal. While pundits are berating the committee and politics in general and the markets are reacting negatively, I believe that the winners in this entire process are the American people.
Who seriously believed that we would face any other outcome? As soon as the committee was formed, several of the members immediately changed the goal from coming up with 1.2 Trillion in cuts to increasing taxes so that the cuts would not have to be made. One member reportedly even proposed counting the "savings" from no longer being at war in Iraq as budget savings in order to avoid any serious cuts at all.
Having a son who is a soldier, I have to admit, I am not exactly happy with what the automatic cuts are going toward. Still, the reality of the situation is that no matter what is cut, someone is going to be unhappy. And while we are hearing of doom and gloom, you have to remember that these cuts are over a 10 year period. The reality of the situation is that the amounts left are not too far off from the budget amounts these same categories had just a couple of years ago.
I don't know about you but my family has not only had to manage without an increase for the last several years, we have had to cut back tremendously. We all know that this is possible. Yet somehow when Federal Government expenditures do not go up, the headlines indicate that we have a catastrophe.
The truth is that given the politics of the situation, there is no politically viable way to make any real cuts in the budget. If you doubt this, simply look back at the budget impasse of the summer. For all of the complaints and finger pointing at how unreasonable those wanting cuts were, they only managed about $7 Billion in cuts on the budget. And while $7 Billion is a lot of money, it is a miniscule amout relative to the entire Federal budget. (making me wonder, who really was unreasonable)
The automatic cuts are not everything we need but it is a badly needed start.
Just my opinion.
BTW - If you need an opinion on Real Estate, give me a call. I specialize in Commercial Real Estate and work with Landlords, Tenants, Buyers, Sellers and Investors. I handle Office, Industrial, Land, Investment and Retail properties. Heck, I can even hook you up on residential real estate. Give me a call if you need help.
ALSO - I am sure that my managing broker would appreciate me noting that these opinions are my own and do not necessarily represent the opinions of Commonwealth Commercial Real Estate, its brokers, agents, or employees (other than me or not). Readers are welcome to make comments and are welcome to disagree. What is not welcome is inappropriate or offensive comments. Should there be any such comments, I will delete them.
Have a great day, all!
David
David W. McCoy
Associate Broker
Commonwealth Commercial Real Estate
10444 Bluegrass Pkwy
Louisville, KY
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