Yep, like I figured

WASHINGTON (AP) — The first phase of a deal to raise the government’s borrowing limit would pose little threat to the economy in the short term because almost none of the spending cuts would occur before 2014.

Discretionary spending, which excludes Social Security, Medicare and Medicaid, would be cut by only $7 billion in 2012 and $3 billion in 2013, according a summary by Senate Democrats. That’s a tiny fraction of the nation’s $14 trillion economy.

“That’s certainly inconsequential for the economy if that’s all it is,” said Mark Vitner, a Wells Fargo Securities economist.

The independent Congressional Budget Office offered its own analysis Monday. It said the agreement would reduce government spending by $25 billion next year. That’s compared to current law, which factors in a projected increase in spending.

What’s causing the threat to our nation’s economy is Washington’s spending.

2 Responses to “Useless”

  1. JeffS says:

    Yays. We’ve been shafted.


  2. aelfheld says:

    A putative total of $10 billion in cuts (forget the 2014 numbers; Congress can not bind future Congresses which is why anything less than a balanced budget amendment is futile).

    Two years to cut less than one day’s worth of spending.

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