Letters will soon be sent out to government employees telling them about redundancies and reduced hours now that US President Barack Obama has signed an agreement on budget cuts.
The shaving-off of 65 billion euros will hurt individual people and the economy, said the president.
“None of this is necessary. It’s happening because of a choice Republicans in Congress have made. They have allowed these cuts to happen because they refuse to budge on closing a single loophole to help reduce the deficit,” Obama added.
A last-minute meeting between Obama and congressional leaders from both parties ended in less than an hour with no deal struck.
One frustrated New Yorker said: “It’s just ridiculous that Congress and the President can’t get along, and it’s just…every so often we have to go through this and it’s just not fair to the people.”
“Hasn’t this happened a bit too many times during the presidency? I feel like we’re not getting anything done. I don’t know. It’s a bit ridiculous,” said another person on the streets of New York.
Worst hit by the cuts will be defence. The military stands to lose 35 billion euros, 10 percent of its budget. The Pentagon will have to trim nine percent off its overall budget between now and September.
The impact will also be felt in education, with teachers beginning to lose their jobs as money runs out.
Only Medicaid and welfare benefits such as food stamps have been spared.