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As required by law, President Obama signed an order on Friday that will soon activate across-the-board sequestration cuts in government after both parties failed to come to an agreement to avert the automatic cuts by the deadline.
The automatic spending cuts were part of a deal made in 2011 between Republicans and Democrats and were originally intended to make them more likely to reach a compromise when crafting a deficit reduction plan. However, the best laid plans can go astray and now both sides are implementing harsh spending cuts that neither really wanted.
Although the cuts will begin to take effect this weekend, the full economic impact will probably not be felt until next month.
The $85 billion in cuts affects the fiscal year that ends September 30 and includes an approximately 9 percent reduction in non-defense federal programs and a 13 percent reduction in defense-related spending…
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