Wednesday, April 13, 2011

The Magical Disappearing "Budget Cuts"

Man alive. (Or dead, which will be the US' financial condition soon....)

A Congressional Budget Office analysis of the fiscal 2011 spending deal that Congress will vote on Thursday concludes that it would cut spending this year by less than one-tenth of what both Republicans or Democrats have claimed. A comparison prepared by the CBO shows that the omnibus spending bill, advertised as containing some $38.5 billion in cuts, will only reduce federal outlays by $352 million below 2010 spending rates.

Huh? How 'zat?

Oh, the usual BS and flimflams.

The astonishing result, according to CBO, is the result of several factors: increases in spending, especially at the Defense Department; decisions to draw over half of the savings from recissions; and cuts to reserve funds and and money for mandatory-spending programs that might never have been spent.

Thus "the Deal". Ace observed that $352 million is about what the Gummint spends in one hour, fifteen minutes. More or less.

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