Kind of a late response, but here goes:
Vindicarre wrote:
Sorry, RD, I thought you were talking about cuts in addition to the BCA and its provision for sequestration. I never imagined you believed reductions in increased future spending in exchange for a like amount of straight up increased spending would count as "cuts".
I'll get to the "increased spending" part in a second, but I should note up front that yes, I do believe that reductions in future spending from the projected baseline, even if that still constitutes an increase over current spending levels, count as "cuts". It's not a cut to the 2013 budget; but it is a cut to the projected 20XX budgets.
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The BCA was passed so that BO could raise the debt ceiling. In exchange for a reduction of the increase in future spending of $917B, BO got $900B in increased spending through an increase in the debt ceiling. The $1.2T reduction of the increased future spending that is "sequestration" was offset by another increase of the debt ceiling by, you guessed it, $1.2T. What BO did, in effect, by signing the BCA was say, "I'll agree not to spend $2.117T over the next ten years in exchange for the ability to spend $2.1T now."
Raising the debt ceiling is not the same as raising spending. There was not a $2T increase in appropriations/spending over what was already approved. Raising the debt ceiling just allows for the spending that has already been approved to actually get spent (including servicing the existing debt). Having a debt ceiling that is not tied to budgetary appropriations is, frankly, the complete opposite of fiscal responsibility.
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It's not as if the current
$16.666 trillion isn't enough incentive.
Actually, it's not. If the absolute value of the debt could be held static at $16.666 trillion, budget hawks would be dancing for joy, because the combination of inflation and GDP growth over the next 10 years would significantly reduce the real and proportional size of that debt. Current GDP is roughly $15.9 trillion. So, even ignoring inflation and assuming a reasonable 2.5% average GDP growth rate, the debt would drop from approximately 100% of GDP to only 80% of GDP, which is much more sustainable. Of course, given that we're running deficits, the debt is actually increasing, not holding steady, which is why this whole conversation revolves around projections for the future - both projections of future economic growth and, as I mentioned above, projections of future spending (so again, cuts in projected future spending are the point).
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that is beyond the fact that even if you count these decreases in spending increases as "cuts", $917 + $1200 = $2.117T. Where's the other $883B in "cuts"?
Sorry, the $3T included about $800-900 billion in cuts from budget deals earlier in fiscal 2011 (which includes the last 3 months of 2010).