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.
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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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