House slashes $38billion from 2011 budget today as GOP is poised to make $6trillion in long-term cuts tomorrow

House slashes $38billion from 2011 budget today as GOP is poised to make $6trillion in long-term cuts tomorrow

 

• Lawmakers slash $38billion from a number of programmes in 260-167 vote
• Jobless claims passed the key threshold of 400,000 last week
• 45.4 per cent of Americans had jobs in 2010, the lowest rate since Reagan-era
  

The US House of Representatives voted in a yearlong measure to slash $38billion from the budget today in a move that will put an end to quarrels between the Republican-led House and the Obama administration – for today.

The measure, which was passed with a 260-167 vote Thursday afternoon, will be passed onto the Senate today and is expected to be signed into a law by Obama, and affects the day-to-day budgets of federal agencies until September.

Though the $38billion in cuts slashes money from a number of programmes, it is a far cry from the amount that Republicans would like to see hacked away – and doesn’t come close to the $60billion they easily chopped two months ago.

Slashed: House Speaker John Boehner said that the measure passed today will 'stop the bleeding' and 'starts us moving us back in the right direction' but added that he hopes that there will be further cuts

'It stops the bleeding,’ House leader John Boehner said today.

‘It halts the spending binge and starts us moving us back in the right direction. Does it cut enough? No. Do I wish it cut more? Absolutely,’ he added.

On the chopping block: $600million from community health programs, $414million from grants for state and local police departments, and an additional $1.6billion from the Environmental Protection Agency's budget

Budget: Obama outlined his plan for deficit and debt reduction this week, targeting the wealthy

Construction and repair projects for federal buildings will see $1billion cut, while another $950million will be chopped from community development programmes.

Boehner also said that the vote today is part of broader, long-term GOP goals.

‘If we pass this bill, Washington will spend $315billion less than its currently on track to spend over the next ten years. It's that simple,’ adding that the GOP budget is ‘the plan that will take us where we truly need to go’.

Tomorrow  lawmakers will vote on a 10-year GOP budget blueprint that seeks $6.2 trillion in savings below what Obama proposed in his February budget.

Meanwhile, the number of people claiming unemployment benefits unexpectedly spiked this week, stunning economists who expected the numbers to continue their gradual decline.

The number of people filing jobless claims passed the key threshold of 400,000 as initial claims for state unemployment benefits rose 27,000 to a seasonally adjusted 412,000, according to the U.S. Labour Department.

Economists predicted the numbers to slip to 380,000 from the last week’s adjusted 382,000, according to a Reuters poll. A steady decline in unemployment claims has been seen for the past four weeks, up until today.

As of last week, a total of 8.52 million people in the US were claiming unemployment benefits under all programs, including regular state programs and emergency unemployment.

Additionally, figures that show that the number of Americans who are working has dropped to its lowest level in 18 years were released today.

45.4 per cent of Americans had jobs in 2010, the lowest rate since 1983, according to a USA Today analyst. That number peaked during the economic boom times of 2000 at 49.3 per cent. According to the study, last year just 66.8 per cent of men had jobs - the lowest amount on record.

SUICIDE TIED TO ECONOMY

Research released today from the Centers for Disease Control and Prevention revealed that suicide rates in the United States rise during poor economic conditions and fall during boom times.

Suicide rates soared to 22 suicides per 100,000 people in 1932 during the Great Depression, while in leaner economic times - like the period of 1991 to 2001 - they plummeted as unemployment rates fell.

The new numbers are a result of years of poor economic conditions, an ageing population and a plateau in women entering the workforce. Such a trend places further strain on already struggling social programs that are facing major cuts. President Obama is seeking what some see as drastic measures to curb the skyrocketing federal budget.

Today the House and Senate will vote on a measure that looks to reduce day-to-day budgets of federal agencies, cutting approximately $38billion from the 2011 budget.

In a speech on Wednesday, President Obama looked to wealthy taxpayers today to bail out the nation's spiralling deficit and help prevent America's baby boomer generation from going broke.

Unveiling a plan to reduce borrowing over the next 12 years by $4trillion, the President said years of overspending meant every American had to make sacrifices.