Those budget ‘cuts’ are actually spending increases

Posted by on Apr 15 2013 | debt, Government Largess, PPC

At’s new Page Two, Independence Institute senior fellow Barry Fagin warns against getting faked out by the Orwellian language trickery being used in the ongoing budget debate in Washington, DC:

We’ve all heard the typical media spin on the budget negotiations. The Democrats are proposing a “balanced” plan of spending cuts and tax increases, while the Republicans are being dogmatic and unreasonable. After all, who can argue with balance? It makes it seem like the alternative is falling over.
Let me state this as clearly as I can: A “spending cut” is when you spend less money than you did before. It’s not that hard to understand. Think about it: If your family has to cut spending, are you going to spend more, or less? It just couldn’t be any simpler.
Unless you’re in Washington. There, cutting spending means spending less than you were hoping to. That’s a very different thing. Think about it this way. If you get a 3 percent raise when you were expecting 5 percent, was that a pay cut? If your taxes go up 5 percent when you thought they would go up 10 percent, were your taxes cut? According to Democratic Party Newspeak, the answer is yes.

Enjoy the whole thing here.

1 comment for now

One Response to “Those budget ‘cuts’ are actually spending increases”

  1. It is unfortunate that liberals have gotten away with that so long they can convince people that anyone who wants to cut spending is an extremist even though it has been growing steadily for decades, this page notes:
    ” The Federal government spent 3.7 times as much per person in 2011 as it did 50 years ago in 1961 when Democratic hero JFK was in office (adjusted for inflation). If Kennedy were around to propose his level of spending today he’d be denounced by the mainstream media as a radical extremist. State and local governments combined spent 4 times as much per capita. ”

    The other problem however is that their “baseline budgets” are usually really only believable figures for the next budget year and optimistic hopes for after that, which is why the CBO and GAO do forecasts with “current policy” more realistic scenarios. Obama’s new budget is about the same as GAO’s “baseline” longterm debt forecast. A study shows that CBO’s estimates for deficits 5 years out have been overoptimistic for decades and worse than a “random walk”. In part they use too optimistic assumptions for future economic growth and other factors, this page:
    plugs in more conservative estimates from the Social Security Administration, SSA’s higher medicare cost numbers, and shows things could be worse than people realize, and government should plan conservatively. Entitlement+interest spending could be more than federal revenue within this decade.

    17 Apr 2013 at 4:25 pm

Trackback URI | Comments RSS

Leave a Reply

Clicky Web Analytics