Fiscal Policy: The latest idea for reining in the federal government's runaway spending is to "freeze" nondefense discretionary outlays for three years. That may sound good, but it's just another gimmick.
We try not to be too cynical about politics, but the White House's proposed freeze will do nothing to address America's budget problems.
Last year alone, the U.S. deficit hit $1.4 trillion on record spending of $3.7 trillion. The freeze will apply only to $447 billion in spending — just 12% of the total. Next year, if the freeze goes into effect, it will save just $15 billion — and $250 billion over 10 years.
Compared with the $9 trillion in new debt and $43 trillion in spending expected over the next decade, it's a pittance — not even a down payment on our gaping shortfalls.
No comments:
Post a Comment