March 1, 2013
How Bad is the Sequester?
From the sound of the legacy media the sequester is very bad and dangerous. Wailing and gnashing of teeth permeates the news coverage as Politicians predict the end of the world. But what is the truth? One truth is that 46% of Federal spending is money borrowed from individuals or the Federal Reserve. The red ink looks like this. Put 46% borrowed following this. Nearly every news report describes the horrendous $85 Billion across-the-board cuts. The legacy media outlets are wrong on two accounts. Nick Gillespie in a Reason article documented the actual spending cuts based on the February CBO report: The first thing to note is that the $85 billion figure that gets bandied about overstates this year's cuts due to sequestration by about $40 billion. According to the Congressional Budget Office (CBO) in its February 2013 report on the budget outlook, "Discretionary outlays will drop by $35 billion and mandatory spending will be reduced by $9 billion this year as a direct result of...(Read Full Post)