Saturday, March 9, 2013
5 Sequester Facts
We all know the sky didn't fall on this past Monday, but Reason TV takes the hype out of Armageddon:
1. The Cuts Are Tiny!
The actual cuts in fiscal year 2013 are only $44 billion, according to the Congressional Budget Office (CBO). The rest don’t even take place until 2014 or later. Whether you use $44 billion or $85 billion we’re talking about 1 or 2 percent of total government spending.
2. Spending is Still Going Up!
Even with the sequester, the federal government is expected to spend more this year than it did last year. The government spent $3.5 trillion in 2012 and i expected to spend $3.6 trillion in 2013 (see Summary Table 1).
3. The Pentagon Won't Starve!
The largest chunk of cuts will come out of the defense budget, which has doubled over the past decade. The Pentagon will still have about $500 billion at its disposal, not counting war-related and emergency appropriations.
4. You Can't Cut Nonexistent Programs!
The White House’s Office of Management and Budget says the sequester will cut a whopping $2 million from the $20 million budget for the National Drug Intelligence Center. That sounds pretty bad - until you realize the Drug Intelligence Center closed its door in June 2012.
5. It Was All Obama's Idea!
The whole damn sequester was the Obama administration’s idea. As the Washington Post’s Bob Woodward has reported, despite Obama’s denials to the contrary, “the automatic spending cuts were initiated by the White House” as part of the deal to raise the debt limit back in August 2011.