Sunday, March 3, 2013

The big lie: Status quo means no increase in spending.

I'm amused at how many online comments have sprung up, suggesting that a spending cut (as in the sequestration) is not a cut if there was an increase in spending to begin with.  Patently untrue.

If the population increases -- as it continues to do in the US, at a rate of about 0.9% annually -- not increasing spending means you're not maintaining status quo, but that you're cutting per-capita spending, and thus services and goods aren't keeping up with demand.  Yes, you will be waiting in longer lines.

If there is inflation -- 1.6% at annual rate, in January -- not increasing spending means you're cutting jobs that you can't afford to pay to keep up with inflation costs, or you're reducing your purchases of goods.

I'm guessing these people listen too much to partisan radio and TV shows, because they're repeating the same thing, from board to board.

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