Wednesday, July 27, 2011

The Boehning, in CBO Terms

Here's the Boehning your children are getting, as the CBO analyzed it.

The CBO estimates that Boehner’s $1.2 trillion in discretionary spending cuts will only save us $850 billion over ten years. This means that Obama’s credit card increase will be higher than the concurrent spending cuts, thus voiding the promise of the dollar-for-dollar agreement. Moreover, the CBO estimates that all the cuts will be backloaded, as the estimated savings for next year – the only enforceable year – will be a negligible $1 billion! It turns out that an extra $4 billion in mandatory spending for Pell Grants will ostensibly wipe out any savings from the paltry discretionary cuts.

Another way to put it is this: you have a $3,700.00/month spending habit with a $2,500.00/month income. Your bank says "Cut your spending!"

You announce that you'll cut $6.00/month.


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