Sequester, Schmequester, Just So Long as the Government Gets to Spend More Money
And it does! Peter Klein notes that our media is largely failing those Americans who actually might care to understand what is actually happening with government spending, and why, and provides a tight explanation of the very basics everyone should understand, but doesn't seem to:
The Narrative is that sequestration imposes large and dangerous cuts — $85 billion, a Really Big Number! — to essential government services, and that the public reaction should be outrage at the President and Congress (mostly Congressional Republicans) for failing to "cut a deal."….In virtually none of these stories will you find any basic facts about the budget, which are easily found on the CBO's website, e.g.:
- Sequestration reduces the rate of increase in federal spending. It does not cut a penny of actual (nominal) spending.
- The CBO's estimate of the reduction in increased spending between 2012 and 2013 is $43 billion, not $85 billion.
- Total federal spending in 2012 was $3.53 trillion. The President's budget request for 2013 was $3.59 trillion, an increase of $68 billion (about 2%). Under sequestration, total federal spending in 2013 will be $3.55 trillion, an increase of only $25 billion (a little less than 1%).
- Did you catch that? Under sequestration, total federal spending goes up, just by less than it would have gone up without sequestration. This is what the Narrative calls a "cut" in spending!….
- Of course, these are nominal figures. In real terms, expenditures could go down, depending on the rate of inflation. Even so, the cuts would be tiny — 1 or 2%.
- The news media also talk a lot about "debt reduction," but what they mean is a reduction in the rate at which the debt increases….
Reason, for all your sequester needs.
