Dramatic Spending Cuts
Russ Roberts puts the sequester “cuts” into perspective:
Today’s front page Washington Post story on the coming budget cuts says that government will have to “dramatically trim” spending. The cuts I read about amount to $1.2 trillion over ten years.
On the surface, $1.2 trillion is a large amount of money. But when you divide by ten, the number of years, you get $120 billion. That is not large relative to a $3.7 trillion budget. Those are not dramatic cuts in the overall level of government spending.
But as Dan Mitchell points out, it’s actually not even that “impressive.”
All it does is restrain spending so that it grows by $2.4 trillion over the next 10 years rather than $2.5 trillion.