First of all, it includes about $1 trillion in cuts that have already
occurred, pursuant to last year’s budget deal with Congress. The
administration doesn’t hide this – the new campaign economic booklet
notes that “The President has already signed $1 trillion in spending
cuts into law.” But “signed into law” does not equal “due only to me.”
Congress, specifically congressional Republicans, had something to do with those reductions as well.
Second, a big chunk of the future reductions are due to the end of major combat operations in Iraq and Afghanistan. About $848 billion of the cuts come from this category, to be precise.
Washington Post fact checker Glenn Kessler judges this to be “phantom savings,” akin to claiming credit for a tuition-size reduction in your household budget the year after your child graduates from college. Other experts aren’t so sure, noting that Obama campaigned in 2008 on winding down US military forces in the Middle East. You can judge this yourself, keeping in mind that Obama (and a President Romney) would have left at least a token force in Iraq if the Iraqi government had signed a status of forces agreement.
Third, another large portion of savings comes from interest savings. The administration calculates that its reductions in other areas would result in the government paying about $800 billion less in interest on the debt over the decade. While this may be accurate, it does not exactly reflect a tough budget choice per se.
Read more: http://www.csmonitor.com/USA/DC-Decoder/Decoder-Wire/2012/1026/Do-the-numbers-of-Obama-s-4-trillion-deficit-plan-add-up/%28page%29/2
Second, a big chunk of the future reductions are due to the end of major combat operations in Iraq and Afghanistan. About $848 billion of the cuts come from this category, to be precise.
Washington Post fact checker Glenn Kessler judges this to be “phantom savings,” akin to claiming credit for a tuition-size reduction in your household budget the year after your child graduates from college. Other experts aren’t so sure, noting that Obama campaigned in 2008 on winding down US military forces in the Middle East. You can judge this yourself, keeping in mind that Obama (and a President Romney) would have left at least a token force in Iraq if the Iraqi government had signed a status of forces agreement.
Third, another large portion of savings comes from interest savings. The administration calculates that its reductions in other areas would result in the government paying about $800 billion less in interest on the debt over the decade. While this may be accurate, it does not exactly reflect a tough budget choice per se.
Read more: http://www.csmonitor.com/USA/DC-Decoder/Decoder-Wire/2012/1026/Do-the-numbers-of-Obama-s-4-trillion-deficit-plan-add-up/%28page%29/2
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