Photo: wikimedia commons
The buzz at the moment is that the budget deal agreed to last Friday is collapsing.When it was agreed to, we argued that the reason the GOP agreed to fairly modest cuts, and no major political moves, was because they were gearing up for a much more aggressive fight on the debt ceiling and the budget.
This was because, ultimately, the FY11 budget was small stakes. After all, cuts of $30-$40 billion really are nothing considering the size of the budget.
But it sounds like the cuts were even less than advertised.
From The National Journal:
For example, the final cuts in the deal are advertised as $38.5 billion less than was appropriated in 2010, but after removing rescissions, cuts to reserve funds, and reductions in mandatory spending programs, discretionary spending will be reduced only by $14.7 billion.
So everything you already think about DC is being confirmed. They can’t cut on any meaningful level and they can’t agree to anything, even when they claim that they can.
Business Insider Emails & Alerts
Site highlights each day to your inbox.