Tuesday, February 26, 2013

Red Herrings

As has always been the case, the draconian, economy destroying, giant, evil, monstrously, insanely huge budget cuts are, in fact, not.  Some nifty infographics from our friends at YAL:

Also check out the analysis by Reason:
Widely quoted as $85 billion for spending in fiscal year 2013 (which ends on September 30), the Congressional Budget Office (CBO) underscores that just $44 billion of spending reduction are slated for 2013, with the rest coming in later years. So what we're talking about is trimming $44 billion from total federal spending expected to be $3.6 trillion this year. If you use the $85 billion number, that's about 2.4 percent of the budget. If you use the $44 billion, you're looking at 1.2 percent.
We should try to define austerity. In its latest budget document, the CBO notes in table 1-1 (look at outlays) that, assuming sequestration happens, there will be a slight dip from 2012 to 2013 in discretionary spending levels. Then discretionary spending rises every year through 2023. Total federal spending is projected to rise from $3.5 trillion in 2012 to $5.9 trillion in 2023. Good luck matching that sort of austerity in your salary gains over the next decade.

If only it were so.

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