boldprogressives.org By Zaid Jilani | Posted on February 26, 2013
Economists are warning that the upcoming sequester could severely harm the economy as government agencies at the federal, state, and local level will see sharp spending cuts.
The sequester’s cuts this year will amount to $85.3 billion. Around half of this spending will be cut from the waste-ridden defense budget, but much of the rest of it will come out of necessary investments in the country’s public infrastructure.
But there’s another area of the budget where almost as much money is spent — subsidies to Big Banks. In an editorial published last week, Bloomberg noted that the ten biggest banks get an effective annual subsidy of $83 billion from taxpayers, and that almost all their recent profits are subsidized by the federal government.
That’s only $2.3 billion short of the amount of money that the sequester cuts. It would therefore be logical if the government were to instead look at cutting these subsidies to Wall Street instead of investments in Main Street America.