7/16/2011

In debt ceiling talks, Obama offers to cut $2 billion from next year's spending?

One almost has to read this Reuter's news article a few times to make sure that you read it correctly. In a budget of some $3.73 trillion (see Table S-1), Obama is willing to cut $2 billion in spending. That is 5 hundredths of one percent! How can anyone cut so little? Obviously, the Democrats want to push of any cuts, even small ones well off into the future, so they can be undone at a future date. Taxes though are to start right now. My previous post showed how Obama wasn't willing to name any cuts in his press conference yesterday.

President Barack Obama has offered a spending cut of $2 billion for the coming fiscal year in White House budget talks, far below the level sought by Republicans, Senate Republican Leader Mitch McConnell said on Thursday.

"We have not been able to get them to a place that we're comfortable makes a serious difference and getting our spending trajectory headed downward," McConnell said on the Hugh Hewitt radio show.

Republicans are already moving spending bills through the House of Representatives that would cut $30 billion from the current fiscal year's funding levels. Because the Pentagon would get a spending increase, cuts would be even steeper for the domestic programs beloved by Democrats.

The two sides are working on a budget deal that would cut roughly $1 trillion over 10 years from the annual discretionary spending that funds everything from space exploration to law enforcement.

Republicans want as big a cut as possible for the coming fiscal year, which starts October 1, to set a lower baseline for the coming years.

"So far it's been pretty puny," McConnell said of the Democrats' $2 billion offer. "Our response to that is the government borrowed $4 billion today." . . .

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2 Comments:

OpenID DougHuffman said...

The innumeracy of the American people cannot be overestimated. It is BHO's most effective and versatile tool.

7/17/2011 5:38 AM  
Blogger Inspector Clouseau said...

During the last Presidential election, CSpan2 Book TV aired a program where the author discussed the results of his or her research, which suggested that something like 5-10% of Democrats , and 5-10% of Republicans, essentially debated and defined the ideological constructs of each party. The point was that the vast, vast, vast majority of the citizens of this country have their lives dictated by the most active and vocal members of society, who also happen to be more privileged .

I strongly suspect that the same thing is occurring with the debt ceiling debate. The debate is not really about the debt ceiling per se, but rather a very deep, long-standing debate about the role and size of government. It’s never been resolved, and never will be resolved in our representative democracy. However, in the mean time, the regular folks in our society run the risk of being irreparably damaged. The elites (the upper and upper middle socio-economic classes) on each side of the fence have theirs, their corporate contributions, decent jobs and income, and will fare just fine economically. It’s the ordinary citizens (lower middle socio-economic class) who will most likely get screwed, no matter which side ultimately prevails in the short term.

7/17/2011 1:26 PM  

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