Obama’s Fiscal “Responsibility”
President Obama is ordering his Cabinet to identify $100 million in budget cuts over the next 90 days. This is supposed to prove to America that President Obama is fiscally responsible (no doubt in response to the Tea Parties). So, he’s proposing a $100 million cut to a $3.69 trillion budget.
Harvard economics professor Greg Mankiw:
To put those numbers in perspective, imagine that the head of a household with annual spending of $100,000 called everyone in the family together to deal with a $34,000 budget shortfall. How much would he or she announce that spending had to be cut? By $3 over the course of the year–approximately the cost of one latte at Starbucks. The other $33,997? We can put that on the family credit card and worry about it next year.
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