Skip to comments.The Austerity Myth: Federal Spending Up 5% This Year
Posted on 10/17/2011 3:18:36 PM PDT by Kaslin
When Republicans took control of the House in January, they pledged to make deep cuts in federal spending, and in April they succeeded in passing a bill advertised as cutting $38 billion from fiscal 2011's budget. Then in August, they pushed for a deal to cut an additional $2.4 trillion over the next decade.
Some analysts have blamed these spending cuts for this year's economic slowdown.
But data released by the Treasury Department on Friday show that, so far, there haven't been any spending cuts at all.
Higher Spending, Deficits
In fact, in the first nine months of this year, federal spending was $120 billion higher than in the same period in 2010, the data show. That's an increase of almost 5%. And deficits during this time were $23.5 billion higher.
These spending hikes haven't stopped many analysts from claiming that the country is in an age of budget austerity, one that's hurting economic growth.
A July article in USA Today, for example, claimed that "Already in 2011, softer government spending has sapped growth."
Jared Bernstein, former chief economic adviser to Vice President Biden, wrote over the summer that "government spending cutbacks have been a large drag on growth in recent quarters and have led to sharp losses in state and local employment."
(Excerpt) Read more at investors.com ...
Cain should lay off the 999 chatter, and talk up a spending freeze or a return to 2008 spending levels.
Spending will never be cut. The establishment will never allow it.
They cut the budget while increasing spending. The sheeple never notice.
Somebody remind me why we vote for Republicans again.
Well, I’ve definitely seen spending curtailed in my Squadron.
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