Super Committee Fails American People

Super Committee Fails American People
Associated Press

Yesterday, the “super committee” charged with the task of finding $1.2 trillion in deficit savings declared defeat and walk away from negotiations.  In a prepared statement, the committee’s co-chairs wrote, “After months of hard work and intense deliberations, we have come to the conclusion today that it will not be possible to make any bipartisan agreement available to the public before the committee’s deadline.”  Senator John Kerry (D-MA) called it a “huge ideological divide.”  The stock markets reacted immediately.  By the end of Monday, the major U.S. indexes closed 2% down, according to a USA Today article

Now, Congress will need to face the triggers put in place this past summer.  Starting January 2013, domestic programs and the defense department will see cuts equaling around $120 billion annually for 10-years.  U.S. Senators John McCain (R-AZ) and Lindsey Graham (R-SC) are already drafting legislation to repeal the hits on the military.  However, President Obama has promised to veto any such legislation stating there are “no easy off-ramps.”

With no game plan, Congressional leaders will need to move quickly in order to find the necessary savings.  Additionally, in the next several weeks, both chambers will have to address issues related to unemployment benefits, taxes and entitlements.

Watch the AP video.

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