House Calls Off Vote On Boehner Bill For The Night | Main | Top Headline Comments 7-29-11
July 29, 2011

Pathetic, Tiny Cuts vs. the Reality of Federal Budgets. [ArthurK]

Some background info the budget process relevant to the pathetic little near term cuts Boehner is talking about.


Foster lays it out.

... the main reason the cuts are back-loaded isn’t political per se, it’s mathematical. Current law assumes that spending on program x will increase at rate y every year for the next ten years. If you freeze spending on program x or even retard its growth, the real dollar value of the cut is thus greater in the out years. It’s as simple as that.

If a program is spending a billion dollars then it's assumed that it will grow x% (Truman North recently said 7% is assumed) a year. So if you cut that program $10 million you also save $10,700,000 the next year and $11,449,000 the year after that. Cutting $10 million NOW results in $32 million less spending over 3 years.

I remember this from the Reagan defense buildup. They talked about the expense of new weapon programs over the years. It was like a ship moving through the ocean. You had a bow wave and a stern wave. The bow wave represented research, development, fixing bugs and buying the new stuff. Like the wave from a boat, it got bigger each year. The stern wave (often overlooked) was operating and repairing the equipment. It didn't kick in until after the new stuff was bought but then it too got bigger each year - pretty quickly.

Cutting spending is like that in reverse.

Hey. I'm not happy about the level of Federal spending. But if you think we're going to cut 40% out of the budget in ONE YEAR... Getting rid of the annual deficit over the next 6-10 years (with the right guys in office) is more plausible - then we can start nibbling or slashing away at the outstanding debt.

And there's no point in arguing with me on this. I've exhausted all my expertise and will sit passively by and let your points roll over me unrefuted! (Red Eye comes on in 18 minutes)



digg this
posted by Open Blogger at 02:41 AM

| Access Comments




Recent Comments
Insomniac - Getting Microaggressed on the Daily, Yo!: "Another good one for the Food Thread. Anyone famil ..."

Sandra F.: "[i]That means they're really being hard if Jimmy c ..."

Mike Hammer, etc., etc.: "Are we now lactophilia intolerant? Posted by: buz ..."

Lost Shaker Assault: "I've been a chef, cook, and restaurant manager 35 ..."

Donna&&&&V sez: Sorry Tribe fans. Go Astros!: "Not entirely OT, here is a vid of some sane - and ..."

Cosmic Charlie: "Tina Weymouth was extraordinary ..."

buzzsaw90: "One word: lactophilia. And celebrity chefs. Pu ..."

filbert: "[i]"Diversity" by itself is valueless. A bucket of ..."

Insomniac - Getting Microaggressed on the Daily, Yo!: "508 Let's face it, diversity is weakness, straight ..."

colfax mingo: "Eromero, Not a poet, but not a bullshitter eith ..."

Mike Hammer, etc., etc.: "It starts with lactophilia, then, the pudding. ..."

publius, the Persistent Poperin Pear: " Another good one for the Food Thread. Anyone fa ..."

Recent Entries
Search


MuNuvians
Polls! Polls! Polls!
Frequently Asked Questions
The (Almost) Complete Paul Anka Integrity Kick
Top Top Tens
Greatest Hitjobs

The Ace of Spades HQ Sex-for-Money Skankathon
A D&D Guide to the Democratic Candidates
Margaret Cho: Just Not Funny
More Margaret Cho Abuse
Margaret Cho: Still Not Funny
Iraqi Prisoner Claims He Was Raped... By Woman
Wonkette Announces "Morning Zoo" Format
John Kerry's "Plan" Causes Surrender of Moqtada al-Sadr's Militia
World Muslim Leaders Apologize for Nick Berg's Beheading
Michael Moore Goes on Lunchtime Manhattan Death-Spree
Milestone: Oliver Willis Posts 400th "Fake News Article" Referencing Britney Spears
Liberal Economists Rue a "New Decade of Greed"
Artificial Insouciance: Maureen Dowd's Word Processor Revolts Against Her Numbing Imbecility
Intelligence Officials Eye Blogs for Tips
They Done Found Us Out, Cletus: Intrepid Internet Detective Figures Out Our Master Plan
Shock: Josh Marshall Almost Mentions Sarin Discovery in Iraq
Leather-Clad Biker Freaks Terrorize Australian Town
When Clinton Was President, Torture Was Cool
What Wonkette Means When She Explains What Tina Brown Means
Wonkette's Stand-Up Act
Wankette HQ Gay-Rumors Du Jour
Here's What's Bugging Me: Goose and Slider
My Own Micah Wright Style Confession of Dishonesty
Outraged "Conservatives" React to the FMA
An On-Line Impression of Dennis Miller Having Sex with a Kodiak Bear
The Story the Rightwing Media Refuses to Report!
Our Lunch with David "Glengarry Glen Ross" Mamet
The House of Love: Paul Krugman
A Michael Moore Mystery (TM)
The Dowd-O-Matic!
Liberal Consistency and Other Myths
Kepler's Laws of Liberal Media Bias
John Kerry-- The Splunge! Candidate
"Divisive" Politics & "Attacks on Patriotism" (very long)
The Donkey ("The Raven" parody)
News/Chat
Archives
Powered by
Movable Type 2.64