Monday, August 01, 2011

What Cato has to say about the budget deal

the Cato Institute, unlike some other thing tanks in Washington DC which are designed to bolster a partisan agenda, is usually pretty good with a clear explantiona, and it doesn't get much clearer than this: Budget Deal Doesn’t Cut Spending.

If Congress were serious about making a real change in how the federal budget works they would implement a zero baseline budget--that is a budget like you and I use. The budgets would start at zero every year. Right now the federal budget has a built increase every year, as much as 3 percent or more for some agencies/programs. So that is how it is possible for the government to claim they are "cutting" the budget and there is actually more money spent from year to year.

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Gramps Toolshed said...

This is so ridiculous. I can't believe how many people still don't know or believe this. Correct me if I'm wrong, but I believe they put that into law back in 1974, and people still don't understand that when they say they are cutting 2.4 trillion, it really means they are only raising the budget by 7 trillion.

Concerned Patriot said...

I wish people could understand this as well. Congress is not making any cuts. Hopefully this changes soon. Keep fighting the good fight man.