"...So what about the $917 billion in "immediate" spending cuts that the Republicans are getting as part of this deal?
Well, they aren't really spending cuts at all. Rather, they are spending caps. Basically what is happening is that future spending increases are being cancelled and our politicians are selling that to us as "spending cuts".
What is even sadder is that the $917 billion is spread over ten years and the vast majority of the "cuts" are in the latter years.
For example, even if you consider these to be "spending cuts" (which they are not), the deal calls for only about $25 billion in "cuts" in 2012 and only about $47 billion in "cuts" in 2013.
25 billion dollars is far less than one percent of the federal budget, so needless to say these "cuts" are not very impressive at all.
Okay, so how about the second stage of the deal which will produce "spending cuts" of between 1.2 and 1.5 trillion dollars?
Well, yes, these would actually be spending cuts and they would be spread over 10 years.
Near the end of the year, the new "Super Congress" (more on that in a minute) will submit a proposal to Congress which could cut spending over the next 10 years by a total of up to 1.5 trillion dollars.
If the recommendations of the "Super Congress" are not implemented, then "automatic" spending cuts of $1.2 trillion will go into effect over the next 10 years..."
at http://theeconomiccollapseblog.com/archives/the-debt-ceiling-deal-from-hell
Well, they aren't really spending cuts at all. Rather, they are spending caps. Basically what is happening is that future spending increases are being cancelled and our politicians are selling that to us as "spending cuts".
What is even sadder is that the $917 billion is spread over ten years and the vast majority of the "cuts" are in the latter years.
For example, even if you consider these to be "spending cuts" (which they are not), the deal calls for only about $25 billion in "cuts" in 2012 and only about $47 billion in "cuts" in 2013.
25 billion dollars is far less than one percent of the federal budget, so needless to say these "cuts" are not very impressive at all.
Okay, so how about the second stage of the deal which will produce "spending cuts" of between 1.2 and 1.5 trillion dollars?
Well, yes, these would actually be spending cuts and they would be spread over 10 years.
Near the end of the year, the new "Super Congress" (more on that in a minute) will submit a proposal to Congress which could cut spending over the next 10 years by a total of up to 1.5 trillion dollars.
If the recommendations of the "Super Congress" are not implemented, then "automatic" spending cuts of $1.2 trillion will go into effect over the next 10 years..."
at http://theeconomiccollapseblog.com/archives/the-debt-ceiling-deal-from-hell
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