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How Sequestration Will Affect Federal Research Agencies

carmendrahl writes "Unless Congress and the White House act before March 1, the automatic across-the-board spending cuts known as the sequester will kick in. And federal agencies are bracing for the fiscal impact. Federal agencies and the White House are releasing details about how these cuts will affect their operations. If the cuts take effect, expect fewer inspections to the food supply, cuts to programs that support cleanups at former nuclear plants, and plenty of researcher layoffs, among other things."

277 comments

  1. Mmm... by c0lo · · Score: 1

    spring time... flu season, isn't it? Comes summer with increased risk of food poisoning?

    --
    Questions raise, answers kill. Raise questions to stay alive.
  2. Monthly dance by Anonymous Coward · · Score: 3, Insightful

    You know they will somehow extend this hard deadline, just like the last.. three times? I lost count.

    1. Re:Monthly dance by hsmith · · Score: 4, Insightful

      How terrible - we go back to spending levels of 2011! It was like we were a third world then!

    2. Re:Monthly dance by halltk1983 · · Score: 3, Insightful

      Well, kids, unless Dad and I can get another credit card I think we might have to cut back on your toy purchases, cause God knows we're not cutting back on cigarettes or McDonalds! It's all those damn credit card companies fault you're not getting birthday presents, and definitely not our budgeting ability!

      --
      Watch for Penguins, they eat Apples and throw rocks at Windows.
    3. Re:Monthly dance by Anonymous Coward · · Score: 3, Insightful

      Weak metaphor, mostly because the US has no issue raising money, alas our rates are at record lows. Additionally, comparing government finances to personal finances is completely assinine and shows incredible ignorance on the subject.

    4. Re:Monthly dance by hsmith · · Score: 0

      Our interest rates are so low because our government can't afford to pay them if they were higher.

    5. Re:Monthly dance by Anonymous Coward · · Score: 1, Insightful

      If people thought they were too risky, they wouldn't buy. Our interest rates are low because of the safety of the almight dollar, not because our government unilaterally dicates that the private market will buy them.

    6. Re:Monthly dance by Nimey · · Score: 2

      Wrong. The interest rates are low to stimulate the economy. If the Fed raised rates back to historic levels costs of borrowing for private organizations would go up and the economy would slow.

      But don't let facts get in the way of GOVERNMENT BAD WHARRGARBL.

      --
      Hail Eris, full of mischief...

      E pluribus sanguinem
    7. Re:Monthly dance by Anonymous Coward · · Score: 0

      TBill rates are set by supply, demand, monetary policy, inflation, and overall market conditions.
      Ever take macroecon? Nevermind, your ignorance is just as valuable as my knowledge.

    8. Re:Monthly dance by Anonymous Coward · · Score: 0

      Wrong. Interests rates are low because people with funds to loan think the US is safer than everywhere else.

    9. Re:Monthly dance by i+kan+reed · · Score: 0

      This is why informed people think republicans are morons. The treasury doesn't set bond interest rates. People who buy them do.

    10. Re:Monthly dance by grep_rocks · · Score: 2, Insightful

      Insightful? - well fuck me, people are idiots -low interest rates mean people _want_ to loan you money, Greece has _high_ interest rates because they are tied to the euro and people are unsure whether they will have enough euros to pay their debt, wheras in the US we have low interest rates because people need a safe place to put their money where they know they will be paid back, if fact rates are so low we pay less servicing our "exploding debt" than we did 10 years ago when nobody cared about the debt - amazing how people commenting about debt and interest rates (like comparing the US goverment to dad with a credit card) are so stupid that they don't understand the basics - yes I said stupid there is no excuse after years of recession.

    11. Re:Monthly dance by squiggleslash · · Score: 2

      Great in theory, but the question then comes "What are toy purchases and what are cigarettes? And what's actually healthy food and shelter?" Everyone sees areas of government we'd like to cut, the problem is my vision rarely corresponds with yours.

      Or, in other words, I'd like our government to hurt and kill people less, and help people about the same or maybe even a little more. Such nice liberal sentiments are, however, not shared by 50% of the population.

      --
      You are not alone. This is not normal. None of this is normal.
    12. Re:Monthly dance by Nimey · · Score: 1

      You're operating under the misapprehension that the Free Market (peace be upon it) is the only thing that sets interest rates in the US. It's not; the Federal Reserve board sets at least one key rate.

      --
      Hail Eris, full of mischief...

      E pluribus sanguinem
    13. Re:Monthly dance by halltk1983 · · Score: 2

      Just because we have people wanting to lend us money doesn't mean we should take it. Do you sign up for every credit card offer that is sent to you just because it means that you could buy a 4th TV for the kid's bedroom? Just because I have banks wanting to lend me money doesn't mean I should take it. Instead, I try to balance my personal budget, keep my overall debt low, and only buy niceties when they are directly affordable. My point above was that while people want to lend us money, we're at the tipping point where that will change. In large part people want to lend the US government money because they see it as a long term, stable investment. As the economy picks up and that money starts getting moved to better performing platforms, then the interest rates start going up to attract them back. And all those trillions of dollars we already owe start getting a lot more expensive. I don't see the point in continuing to put a larger and larger part of our income towards interest when we could be working on fixing the root cause, which is the overspending.

      --
      Watch for Penguins, they eat Apples and throw rocks at Windows.
    14. Re:Monthly dance by halltk1983 · · Score: 1

      Families have these same issues. The stay at home mom needs the cable for the kids to sit in front of the disney channel, the dad needs a BMW so that his coworkers don't talk about him around the water cooler, Johnny needs nikes and Suzy has to have the latest pre-ripped jeans.

      Budgeting sucks. No one is going to be happy. Cuts have to happen across the board. Mom gets netflix, Dad gets a focus, Johnny gets New Balance and suzy gets Target jeans that rip on their own. Everyone is unhappy, but at least the mortgage keeps getting paid.

      The problem that this country has is that we're all trying to get free money, and something from nothing. Just cut it out. Pull back the military spending, I'm fine with that. Pull back the subsidized loans. Fine with that too. Pull back in all the areas, and spread the pain out. At the same time, cut inefficiencies where you can, raise additional income where possible, and try to come out with a balanced budget. And for those that think it's impossible, we HAD ONE, 13 years ago. What has your government given you in the last 13 years that is worth handing this bullshit to the next generation?

      --
      Watch for Penguins, they eat Apples and throw rocks at Windows.
    15. Re:Monthly dance by atriusofbricia · · Score: 1

      How terrible - we go back to spending levels of 2011! It was like we were a third world then!

      Not only that but if Government spending, which is ultimately wealth taken out of the economy after the productive parts of the economy produced it, is so bloody important that we're all going to starve and die if it is lost then that is both extremely sad and scary.

      --
      I was raised on the command line, bitch

      "Nemo me impune lacesset"

    16. Re:Monthly dance by grep_rocks · · Score: 2, Insightful

      We are - we are at the tipping point? how do you know? When the economy starts to recover interest rates will go up and so will tax income, the reason we are running a deficit is because people are unemployed, not paying taxes and collecting benefits, the deficit was much smaller before the recesssion even with the bush tax cuts and war spending and it went up because people stopped paying taxes because they didn't have a fucking job and the government had to pay them unemployment - when people get jobs the deficit goes down (as it has been for the past several years! but nobody mentions that) - we are running a smaller deficit now than we did two years ago, this will continue as employment improves - this is standard fucking stuff, but people keep repeating this nonsense about spending, people need to get a clue.

    17. Re:Monthly dance by Anonymous Coward · · Score: 0

      And that rate is set largely based on what? - GDP. The health/weakness of the what? - the Market!

    18. Re:Monthly dance by Anonymous Coward · · Score: 0, Informative

      When the federal reserve is engaged in "quantitative easing" ie. flooding the bond market with cash, the government is in effect cratering the price. It may not be the treasury dept. do it but the fed and treasury often work together on economic policy.

      You might want to work on be slightly more informed.

    19. Re:Monthly dance by Anonymous Coward · · Score: 0

      Yes they will. Also notice how they always threaten to cut the important stuff.

      Why not cut retirement benefits of gov. workers. Reduce the size of IRS. Get rid of TSA.

    20. Re:Monthly dance by interkin3tic · · Score: 1

      Biologist here. Cuts to grants are already being made, since the adults can't put all their plans on hold until they can be sure the children are going to do the right thing. This dance IS damaging research already. Research jobs ARE being lost.

    21. Re:Monthly dance by interkin3tic · · Score: 1

      The Budget, and budgets that depend on the budgets, and people's budgets that depend on the budgets that depend on the Budget... not all of that scales down efficiently or evenly. If you simply and immediately tighten your belt to where it was when you were thinner, your fat doesn't simply evaporate as you wish it would, Instead, it just constricts organs you wish to continue functioning. And it hurts a lot. Which is why no one does it that way. Your midsection is relatively simple and inconsequential compared to the national budget. It's going to crimp valuable programs and research, and it's not going to clean up waste or programs that need to be cut. The politicians are going to protect their pork projects, the military industrial complex is obviously not going to scale back. Instead, biomedical research will slow down, regulatory agencies will lose even more teeth (and they won't grow back either), hospitals will raise their prices again, colleges will raise tuition and put even more students further in debt. And there will be other bad effects too which you won't like.

    22. Re:Monthly dance by scottbomb · · Score: 1

      If you really want to hear them howl, let's go back to Clinton-level spending. Adjust it for inflation if you like and they'll still cry bloody murder about how children will starve and seniors will die on the streets.

    23. Re:Monthly dance by Anonymous Coward · · Score: 0

      I guarantee we agree since I am for cutting it all. Oh except for the part of your cutting that involves more

    24. Re:Monthly dance by Cyberax · · Score: 2

      I wish el-stupido ron paul fanatics would stop spouting this nonsense. QE doesn't have the effect on T-Bill interest rate, it's set by the market itself. As a proof - last year after the QE stopped the interest rate have actually gone a little bit lower.

    25. Re:Monthly dance by BigDaveyL · · Score: 1

      But, we ran deficits when times where good. It's just that those day's look better because they were a tenth of what they were today.

      Many people, understandably so, had concerns about government spending and how much the USA owes well before the 2008 crash. Maybe if the government had owed nothing and operated in the black every year, the crash wouldn't have been as bad and we wouldn't have this bickering today.

    26. Re:Monthly dance by BigDaveyL · · Score: 1

      I couldn't have said it better myself.

    27. Re:Monthly dance by femtobyte · · Score: 1

      The Fed sets some rates directly. However, you do know how Treasury Bond rates are set? By public auction: a few times a year, the Treasury lets anyone who wants ask for whatever price and interest rate they'd be willing to pay and receive for bonds, and then sets their prices to fulfill the most favorable few billion of offers. And every time, they find several billion dollars worth of buyers saying "please take my money for 10 years at 1% interest!" --- which, given how sucky the rates of return are, indicates an awful lot of trust in the long-term stability of the country by the same multibillionaire investment class that publicly decries impending debt implosions.

    28. Re:Monthly dance by nmr_andrew · · Score: 1

      I have to disagree to a point. We shouldn't take the money and spend it on stupid stuff.

      However, right now we can borrow money as a nation at less than the cost of inflation, i.e. anything we spend on now will cost less than it will in the future. So it really is a prime time to do things like fixing roads and bridges, upgrading/modernizing the electric grid, etc. with that terrible side effect of actually putting some of the unemployed to work. Most of whom will turn around and spend a lot of what they make, and will pay taxes on it, which will make the true cost of doing these things $X * (1 - $TAXRATE).

      Of course, I'm sure instead of doing it right the feds would award the work as a no bid contract to Halliburton or similar.

    29. Re:Monthly dance by colin_faber · · Score: 2

      Right, and when the Fed is buying hundreds of billions of dollars of public bonds with money they're printing from thin air... Who sets those rates again?

    30. Re:Monthly dance by SomeKDEUser · · Score: 1

      Dude, if someone lends you money at a rate below the inflation and you refuse, you are an idiot. Alternatively, if you cannot get more returns than the minuscule rate at which th US borrows, you are an incompetent.

      At a time where the economy is below potential and there is a dearth of investment, of course the US should borrow as mucha s it can, and invest all that money in infrastructure, but also research and better unemployment benefits. Because unemployed people tend to need and therefore spend that money. Unlike banker who will tend to hoard it.

    31. Re:Monthly dance by Jane+Q.+Public · · Score: 2

      "If people thought they were too risky, they wouldn't buy. Our interest rates are low because of the safety of the almight dollar, not because our government unilaterally dicates that the private market will buy them."

      Absolute nonsense.

      First, in case you hadn't noticed, they HAVE begun to cease buying. Remember the flap about China raising its valuation compared to the dollar? They haven't done that very strongly, simply because it would devalue their own large U.S. investments. But it has nothing to do with trust or safety, and our domestic interest rates have absolutely nothing directly to do with the money market.

      Second, it's the Fed that sets interest rates within the U.S., not the money market. And while the Fed is technically not government, it might as well be, since government and the Fed are great big asshole buddies, and the President appoints the chairman. And it is the Fed (this is hardly controversial... it's been in the newspapers, and on TV, and on YouTube) that has been keeping our interest rates at rock-bottom. And even that isn't enough! They've done "quantitive easing" what, 4 times now? 5? Which is something they do only when they can't lower the interest rates further.

    32. Re:Monthly dance by Anonymous Coward · · Score: 0

      You'll never win arguing with these morons. You know that money and debt are just the same thing viewed from two different sides, and that were the Fed to raise rates, there would be less debt and less money in the economy, and the economy would shrink. So yes the fed has loaned out vast amounts of money, to replace money that's been destroyed during the downturn in 2008. You'll never explain that to the morons.

      Like 'rates are low to stimulate the economy' This is BS because rates are so low, t-bills and hard cash are the same thing. Meaning the stimulatory effect of reducing rates peters out as you approach zero interest rate. Government borrowing is just another type of tax, one that gets paid later, not now.

      But as I said, the morons simply can't understand any of it.

    33. Re:Monthly dance by Jane+Q.+Public · · Score: 1

      "The Fed sets some rates directly. However, you do know how Treasury Bond rates are set? By public auction..."

      Not really terribly relevant. The Fed sets the prime lending rate, which pretty much dictates both bank and consumer borrowing rates. If anything, bond rates have a sort of inverse relationship.

      I'm not saying they're completely unrelated, but they do have a relatively minor impact on the economy as a whole.

      And, I don't buy the claim that those bond interest rates are based on trust in stability. Rather, they are based on trust in the Government's ability to print money, which is a far, far, vastly different thing.

    34. Re:Monthly dance by Jane+Q.+Public · · Score: 1

      First, GP didn't claim that QE directly sets the interest rate. The claim was that it effects the market, and the market then changes the rate. You're arguing with something that wasn't even said.

      Further, your "proof" is nothing of the sort. Very few interest- or inflation-changing events have an instant effect. There is usually a delay. For example: after the bailout, prime interest rate lockdown, and the first QE, it took a couple of years for your grocery bill to start going up.

    35. Re:Monthly dance by femtobyte · · Score: 1

      Well, it seems that the government's regular printing of money isn't exactly plunging the currency into a terrible deflationary spiral. Why do you think investors would buy up 10 and 30 year notes? Is it because they think the government is printing up so much money that in 10 to 30 years we'll be paying for bread with wheelbarrows of billion dollar bills? It seems that big investors are pretty sure that all this money printing won't hurt the value of their dollar-based bonds --- they could've bought gold, or corn futures, or anything else, but something about the expected management of the US dollar makes them eager to tie up assets at extra low interest rates. Perhaps printing money is key to the government and economy staying long-term stable?

    36. Re:Monthly dance by femtobyte · · Score: 1

      edit: s/deflationary/inflationary

    37. Re:Monthly dance by DragonWriter · · Score: 1

      You're operating under the misapprehension that the Free Market (peace be upon it) is the only thing that sets interest rates in the US.

      The market is the thing that actually sets the interest rates that are relevant to the government's ability to raise funds through borrowing (those on Treasury securities).

      It's not; the Federal Reserve board sets at least one key rate.

      The Federal Reserve board sets the Federal funds rate, which is a rate for interbank loans, and has no direct bearing on the issue here. It is an interest rate, its just the interest rate that matters to the issue.

    38. Re:Monthly dance by DragonWriter · · Score: 1

      When the federal reserve is engaged in "quantitative easing" ie. flooding the bond market with cash, the government is in effect cratering the price

      Cratering the price of treasury securities would be increasing effective rates. Which, even if it was true (which I don't see how you get from QE to that effect), would make the low rates (=high prices) of treasury securities more significant, not less.

    39. Re:Monthly dance by ChrisMaple · · Score: 1

      The Fed sets the short term rates that they will loan at. Borrowing rates and long term rates are determined by the market (influenced by the Fed's short term rate), unless the Fed severely messes with the market, as it is doing now, by buying up US government bonds that can't be honestly sold on the free market.

      --
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    40. Re:Monthly dance by Jane+Q.+Public · · Score: 1

      "Borrowing rates and long term rates are determined by the market "

      You are denying that the Fed's setting of the prime rate has a direct (and pretty solid) effect on borrowing rates?

      Yes, borrowing rates are set by the market. But that market is pretty damned well regulated by the prime rate, set by the Fed.

    41. Re:Monthly dance by Jane+Q.+Public · · Score: 1

      " it seems that the government's regular printing of money isn't exactly plunging the currency into a terrible [inflationary] spiral."

      Oh? First, there is generally a 2-3 year delay between inflationary influences and the start of inflation actually hitting the market. So most of it won't have hit the market yet anyway. But some. Have you checked your grocery bill lately? I don't know about yours, but mine has been up somewhere around 50% over just the last couple of years. And short-term commodities like that are usually the first to see a major hit.

      So we HAVE been beginning to see some major inflation, just about on schedule, give or take.

      If inflation isn't significantly above the government-claimed "approximately 2%", why do they want to raise the minimum wage 24%? Just an arbitrary figure in a misguided attempt to "legislate prosperity"? Or an attempt to cover actual costs of living the government lied about? Either one is bad news.

      "It seems that big investors are pretty sure that all this money printing won't hurt the value of their dollar-based bonds"

      Investors always have been "pretty sure". They were sure of that in 1929... that's why the markets were at an all-time high, just before the big crash. They were just as sure in 1999-2000. And they were just as sure in 2007-2008. Look at the YouTube clips from both periods, of people saying "Come on in! The economy has never been better! The market has never been higher!"

      Puh-leeze. You'd have to give me a far better reason to have faith in government monetary policy than "the big investors seem to think it's okay". They have frequently been disastrously wrong. And besides, since 2008, even if they are wrong, they have faith they'd just be bailed out, right?

    42. Re:Monthly dance by femtobyte · · Score: 3, Insightful

      Oh? First, there is generally a 2-3 year delay between inflationary influences and the start of inflation actually hitting the market. So most of it won't have hit the market yet anyway. But some. Have you checked your grocery bill lately? I don't know about yours, but mine has been up somewhere around 50% over just the last couple of years. And short-term commodities like that are usually the first to see a major hit.

      My grocery bill has been more stable; your personal anecdotes (and mine) may not be indicative of overall economic trends. Maybe inflation is about to go through the roof? Nonetheless, folks with billions to invest are still volunteering to buy long-term treasury bonds at worse interest than my checking account. Not that billionaire investors can't be terribly wrong.

      If inflation isn't significantly above the government-claimed "approximately 2%", why do they want to raise the minimum wage 24%? Just an arbitrary figure in a misguided attempt to "legislate prosperity"? Or an attempt to cover actual costs of living the government lied about? Either one is bad news.

      Maybe because the minimum wage is down by more than 50% from when it was introduced many decades ago? You realize that proposed 24% increases aren't just covering for one year of stagnant wages?

      Investors always have been "pretty sure". They were sure of that in 1929... that's why the markets were at an all-time high, just before the big crash. They were just as sure in 1999-2000. And they were just as sure in 2007-2008. Look at the YouTube clips from both periods, of people saying "Come on in! The economy has never been better! The market has never been higher!"

      And investors holding government bonds during the recent crash did quite well. Investments based on the private sector tanked, but no one lost a cent on Treasury bonds. The private sector is notoriously unstable; the US government has historically managed to produce a rather stable currency with well-defined slow inflation, which is why investors are eager to buy (at interest rates that lose to inflation) in economically unstable times.

    43. Re:Monthly dance by Cyberax · · Score: 1
      No it doesn't. There are no channels by which QE can affect the T-Bill interest rate.

      Look, T-Bill rate means that investors have no trust in the economic growth, so they are vary of putting their money into the stock market or any other risky investment. Instead they seek a safe haven in T-Bills.

      For example: after the bailout, prime interest rate lockdown, and the first QE, it took a couple of years for your grocery bill to start going up.

      Bing! Wrong. Inflation has been low since the start of the crisis. We even got a couple of minor transient deflation episodes. Meanwhile, the monetary base has expanded by 3 times (300%!). Do you see inflation in excess of 300%? I surely don't. Yet according to the same "crowding out" theory we should have had a hyperinflation like 3 years ago.

    44. Re:Monthly dance by Jane+Q.+Public · · Score: 1

      Pardon me, but we have a context issue here.

      GP hadn't written anything about T-Bills. So I hadn't seen the context. But I just now looked at what he was replying to, and saw that it was about government itself "not being able to afford the interest".

      I thought your comments were out of context. But I see that mine were. I retract my other comments about this particular thing.

    45. Re:Monthly dance by Jane+Q.+Public · · Score: 1

      "My grocery bill has been more stable; your personal anecdotes (and mine) may not be indicative of overall economic trends."

      I have friends around the country and they have all been complaining about high grocery prices. So while your mileage may vary, I have good evidence that this is far from a local phenomenon. (Not to mention that I buy much of my food at nation-wide franchise chains. On average, their prices are not likely to vary a lot from one region to another.)

      "Maybe because the minimum wage is down by more than 50% from when it was introduced many decades ago? You realize that proposed 24% increases aren't just covering for one year of stagnant wages?"

      Do you think I am a fucking idiot? It's up 24% from the last time it was raised, 6 years ago, to $7.25. That is significantly different from government's claimed inflation rates. Your argument that it is "down 50%" just reinforces what I was saying: inflation is higher than what government has been claiming. But anybody with half a brain who has looked at how the government calculates it knows that anyway.

      "And investors holding government bonds during the recent crash did quite well."

      Whooooosh!

      It's simply not in your worldview that government monetary policy can be unsustainable, or investors wrong, eh?

    46. Re:Monthly dance by femtobyte · · Score: 2

      I have friends around the country and they have all been complaining about high grocery prices. So while your mileage may vary, I have good evidence that this is far from a local phenomenon. (Not to mention that I buy much of my food at nation-wide franchise chains. On average, their prices are not likely to vary a lot from one region to another.)

      I didn't say prices weren't rising at all, but your claim of ~50% over the last two years is quite a jump --- at that scale, it's unlikely to be largely the result of government monetary policies, which are going to come much closer to 5% than 25% per year. National coordinated price rises across big-chain franchises is probably more an indication of the expected results of oligopolistic pricing in a non-competitive market.

      It's up 24% from the last time it was raised, 6 years ago, to $7.25. That is significantly different from government's claimed inflation rates. Your argument that it is "down 50%" just reinforces what I was saying: inflation is higher than what government has been claiming. But anybody with half a brain who has looked at how the government calculates it knows that anyway.

      My reference point for ~50%, about which I should have been more clear, was the minimum wage ~50 years ago (not the 6-year-old definition). I agree that government inflation estimates often tend towards the low side --- hence, e.g., the harm of attempts to tie government benefits to CPI. However, the difference is typically more on the order of 5% vs. 3%, instead of the "oh noes! hyperinflationary disaster!" panics based on cherry-picking particular fluctuation-prone goods.

      Whooooosh!
      It's simply not in your worldview that government monetary policy can be unsustainable, or investors wrong, eh?

      Whooooosh yourself. Government monetary policy certainly can go horribly wrong; and US historical and current practice has generally been quite sub-optimal. However, it has if anything erred on the side of too little inflation, protecting investors over stimulating economic activity. Printing up free money at a controlled rate actually *works* for keeping society chugging along quite stably; just think of it as an un-evadable tax on hoarding US$. Investors also certainly can be wrong --- I generally consider having society's resources primarily controlled by a few investing billionaires *wrong* on a much more fundamental level. But investors considering US bonds (hence the multi-decade financial stability of the US government) to be a safe stable bet (despite continuing the long, publicly visible tradition of "printing new money") are not making imprudent decisions.

    47. Re:Monthly dance by bbsalem · · Score: 1

      I don't believe the accounting! Especially with Paul Berg and all those Libertarian congressmen doing the accounting.

    48. Re:Monthly dance by bbsalem · · Score: 1

      Yeah, that is the stupidity the House Speaker tried during the Debt Limit Debate. John Baynour got on prime time and made the false analogy of the federal debt with a credit card limit for a family. A family doesn't control the money supply are decide who to tax for its spending. There is a hidden agenda here. It is the libertarian fixation on money as a fixed asset. While other conservatives look the other way on market speculation they want us to believe that money is like the conservation of mas and energy, it isn't, and there is as much speculation and manipulation of treasury notes and exchange rates as with equities. The conservatives ought to be less consumed with fiscal restraint as with why even a less-regulated market economy, after the speculative bubble they helped create burst, doesn't produce opportunity for most Americans. It is because they are not working for most Americans. It is time to flush them from the scene,

  3. Chaos by MrDoh! · · Score: 2
    So there'll be the inevitable food poisoning outbreak, nuke reactors not getting the full checks (one would hope they were doing it right before, anything less...), oh, and the weather warnings will be heavy hit with "NOAA expects 1,400 contractors would be let go, 2,700 positions would not be filled, and 2,600 employees would be furloughed." Well, that's one way for people to help deny climate change "What hurricane? I see no hurricane"

    Sheer bloody idiots. They couldn't get their act together to get sensible budgets, so now we end up with this. Shame it's not tied into Politicians' pay, but they're probably getting their cuts of the pie from the people who will benefit from all this.

    --
    Waiting for an amusing sig.
    1. Re:Chaos by Sooner+Boomer · · Score: 3, Informative

      Shame it's not tied into Politicians' pay,

      Actually, their pay (Congress/Senate) is supposed to be withheld until the sequestration ends.
      If this is the end of the civilized world, as some are fearmongering it, why was Obama out on a golf vacation instead of working on the budget? Does this show how seriously he takes it? Sequestration was his idea after all.

      --
      Chaos maximizes locally around me.
    2. Re:Chaos by nospam007 · · Score: 4, Funny

      "expect fewer inspections to the food supply..."

      Over here in Europe we have tons of Horse-Lasagne that we can finally drop off then.

    3. Re:Chaos by Big+Hairy+Ian · · Score: 3, Funny

      Nah we've been doing that for years we just changed the name to Taco Bell :)

      --

      Build a Man a Fire, and He'll Be Warm for a Day. Set a Man on Fire, and He'll Be Warm for the Rest of His Life.

    4. Re:Chaos by pedestrian+crossing · · Score: 5, Informative

      Actually, their pay (Congress/Senate) is supposed to be withheld until the sequestration ends.

      Unlike the rest of federal employees who won't get their pay back after sequestration ends, congressmen/senators will.

      If this is the end of the civilized world, as some are fearmongering it, why was Obama out on a golf vacation instead of working on the budget?

      It is the legislative branch who has failed to act, not the executive.

      Does this show how seriously he takes it? Sequestration was his idea after all.

      Though Obama proposed the idea, 174 House Republicans, a majority of the majority, joined 95 Democrats to pass the plan. So Republicans arguably own the sequester as much as Obama, if not more so, since Obama never wanted to link spending cuts to the debt ceiling.

      --
      A house divided against itself cannot stand.
    5. Re:Chaos by halltk1983 · · Score: 0

      Yeah, those bastard Republicans. Why do they always insist on tying spending to how much credit is available? I mean, the government works with the fed to just print more money! Works great in Zimbabwe! (Not a Republican, but I'm worse when it comes to this area. I'm a libertarian.)

      --
      Watch for Penguins, they eat Apples and throw rocks at Windows.
    6. Re:Chaos by AvitarX · · Score: 2

      The credit.is available though (not saying we.should borrow more, just saying you should speak truth).

      of course the response to not being able to borrow very well could be printing (well casting) more money (see trillion dollar coin).

      --
      Wow, sent an e-mail as suggested when clicking on "use classic" banner, and got a fast response that addressed my msg
    7. Re:Chaos by Anonymous Coward · · Score: 0

      Why do they always insist on tying spending to how much credit is available?

      Where have you been for the past 50 years?

    8. Re:Chaos by drdread66 · · Score: 1

      Um, no.

      Summary: the 27th amendment prevents Congress from altering its own salary during the same session, and the sequestration deal was originally struck to apply to the same session.

      So, our crongresscritters will continue to get paid as they avoid doing the job they were hired to do.

    9. Re:Chaos by Anonymous Coward · · Score: 1, Insightful

      If by "always" you mean "whenever a Democrat is president", sure. They gave precisely zero fucks about deficit spending for the past three Republican presidents.

    10. Re:Chaos by halltk1983 · · Score: 2

      The "credit" is only available because the government has the ability to raise its own limits. Until the day when everyone stops buying bonds. I'm saying that we should stop needing to sell bonds before they become worthless.

      Also, the fed stated that they wouldn't accept trillion dollar coins. That's the hard part about allowing an independent organization to be in control of the fiat currency system.

      --
      Watch for Penguins, they eat Apples and throw rocks at Windows.
    11. Re:Chaos by halltk1983 · · Score: 1

      In a way, they do. They just keep increasing their credit limits every couple of years. Obviously this plan has no down side and cannot possibly fail.

      --
      Watch for Penguins, they eat Apples and throw rocks at Windows.
    12. Re:Chaos by Anonymous Coward · · Score: 2, Insightful

      The "credit" is only available because the government has the ability to raise its own limits. Until the day when everyone stops buying bonds. I'm saying that we should stop needing to sell bonds before they become worthless.

      The interest on government bonds is less than inflation and they still sell well, which is an indication that the market is quite far from considering them worthless.

      The other thing that the low rates suggests is that lowering taxes wouldn't create a flood of private sector investments. Right now there's a metric fuckton of money tied on bonds that lose money every day and no one is in a rush to employ it more productively so there isn't a good reason to believe that tax cut money would end up funding innovation.

    13. Re:Chaos by Impy+the+Impiuos+Imp · · Score: 1

      We used to sell horses to oher countries for food. Then someone noticed and Congress sprang into action, doing what they do best -- pandering to blowing public sentiments.

      --
      (-1: Post disagrees with my already-settled worldview) is not a valid mod option.
    14. Re:Chaos by Anonymous Coward · · Score: 0

      Dude, get off it; Obama has never wanted to cut spending.. Just increase taxes; how are all of you less than 250k makers enjoying your increased SSI *AND* Federal Income taxes?

    15. Re:Chaos by Anonymous Coward · · Score: 0

      That was true until several Republicans proposed fixes for the sequester during the presidential campaign and Obama threatened to veto any efforts to replace the across-the-board cuts with anything more targeted. "There will be no easy off-ramps on this," he said. When he refused to let anyone replace the draconian cuts with anything more sensible while there was time to be thoughtful about it, the present crisis officially became His Mess.

    16. Re:Chaos by medcalf · · Score: 1

      But the bunny inspectors will continue to be fully funded (yes, we pay people to inspect stage magicians' rabbits) and the money will keep flowing to the cronies of the President and various congressvermin.

      --
      -- Two men say they're Jesus. One of them must be wrong. - Dire Straits
    17. Re:Chaos by somarilnos · · Score: 1

      The pay withholding is just a whole 'hey, look at how determined we are to make this right!' political ploy. That part of the law is unconstitutional (directly violates the 27th amendment), so it would never be upheld under scrutiny. Congress has no power to affect their own pay until the next session comes into play (so if you don't like them getting a huge raise, you can vote in different people).

      While I agree it's not the end of the civilized world, it is a sad state of affairs when the only way to get legislation passed is to put in a clause that is intended to actively hurt the country unless action is taken.

      Ok, I really don't like what you're doing with this bill. Well, what if we also added something to it that makes it explode in a year or so. Would that make it more amenable to you? Oh, absolutely!

      Just a matter of who gets caught holding the hot potato.

    18. Re:Chaos by fifedrum · · Score: 2, Insightful

      oh bullshit. Stop regurgitating the party line. Though, you're probably getting paid to do so.

      The level of cuts are miniscule, so minor as to be meaningless. The whole story is propaganda to try and shore up Obama's numbers and lay the blame for the entirety of the failed economy on someone else. That's right, let's blame the minority in the legislature, not the leader. There's no way the tiny level of spending cuts are going to impact every single person working for the government. It's complete bullshit and you know it.

    19. Re:Chaos by Hypotensive · · Score: 1

      Horsemeat would probably make those fat Americans slightly healthier.

    20. Re:Chaos by interkin3tic · · Score: 2

      If this is the end of the civilized world, as some are fearmongering it, why was Obama out on a golf vacation instead of working on the budget? Does this show how seriously he takes it?

      Work on? What work is there to be done on it? More sitting in a room with Boehner et al with everyones arms folded glaring at each other? Suggesting a few more times that they cut each other's pet projects? Suggest again that taxes be raised, and say again "no! We took a sacred blood oath to Norquist!"

      There's no work to be done besides convincing the other that they're not going to cave. Going on vacation might be the best way to show republicans he's not budging. Though it seems like terrible PR to me. But what do I know?

    21. Re:Chaos by Anonymous Coward · · Score: 0

      Of course, each state has their own force of food supply inspectors. Why not claim teachers and fire fighters (paid by local governments mostly) will lose their jobs (and don't distinguish between a few months of reduced weekly hours and completely losing a job).

    22. Re:Chaos by Anonymous Coward · · Score: 0

      He was banging Reggie Love again, playing golf with Tiger was a ruse.

    23. Re:Chaos by Anonymous Coward · · Score: 0

      Yes, as if a 3% across the board cut is going to require all that drastic action. If NOAA is getting rid of 25% of it's staff in response to that small of a cut, then I suggest that their management really needs to look at their other expenses. Besides most of the employees that perform those functions most likely would be lumped into "essential" and would continue to do their job.

      This is just blatant scaremongering.

    24. Re:Chaos by Anonymous Coward · · Score: 0

      Unlike the rest of federal employees who won't get their pay back after sequestration ends, congressmen/senators will.

      That's BS. Even with the more drastic "shutdowns" in the 1990's, federal employees still got paid. My friends in the USGS loved it because it was like Congress and the President gave them an unscheduled vacation. Many wished the politicians would do it every year.

    25. Re:Chaos by Anonymous Coward · · Score: 0

      Um, your Federal income taxes didn't increase unless you make more than $400,000. The SSI "increase" is just going back to the rate it was before the temporary reduction.

    26. Re:Chaos by Anonymous Coward · · Score: 0

      You WISH Taco Bell used real horse meat... Their stuff is 3d printed cloned horse meat (64%) along with 36% other misc.

    27. Re:Chaos by pedestrian+crossing · · Score: 1

      Tell that to the federal employees who are preparing for furloughs - a 20% effective pay cut. It's real. Whoever modded you insightful is smoking crack.

      --
      A house divided against itself cannot stand.
    28. Re:Chaos by ChrisMaple · · Score: 1

      So there'll be the inevitable food poisoning outbreak

      And this is different than how things have been?

      This is where insurance companies start to earn the money they've been ripping off from their customers in the food processing industry. They notify their customers: "You are not covered against damages caused by failure to do due diligence in making your foods safe. Oh, and by the way, if you poison people, we will encourage the appropriate law officials to start criminal prosecution."

      --
      Contribute to civilization: ari.aynrand.org/donate
    29. Re:Chaos by ChrisMaple · · Score: 1

      It looks like the cuts are pretty selective. They're being made against people who can't fight back effectively and people whose yelling will attract the press in a manner favorable to Fuhrer Obama.

      --
      Contribute to civilization: ari.aynrand.org/donate
    30. Re:Chaos by ssyladin · · Score: 1

      The concept is to set up a painful BATNA - best alternative to negotiated agreement - so that if the parties *fail* to come to a compromise, then this ugly thing will happen. It builds a common ground and an incentive for all parties to NOT let negotiation fall through. The idea is that you'll all put your big boy pants on and it will never come to pass. But because of the myopic needs and wants of the electorate who put these jarheads in power, the Congress is playing chicken to serve primarily the needs of the few that elected them and not for the betterment of the entire country. Hell, we still manufacture bayonets for the army because it is some stupid pork for a congressman to placate his district with "jobs".

    31. Re:Chaos by fifedrum · · Score: 1

      again, bullshit. There's no way that a %0.05 cut in the budget to a level of just over a year ago is going to cause all the misery that the press is reporting on this. They're reporting EVERYTHING is going to collapse.

      everything from school lunches to aircraft carrier maintenance, beef inspections to border patrol

      these reports are all bullshit

    32. Re:Chaos by pedestrian+crossing · · Score: 1

      Well it must be a pretty elaborate hoax because a -lot- of people are getting furlough notices. 1 day per week - 20% less pay. Maybe in your little world it's not real, but for the hundreds of thousands of people who are taking a 20% pay whack it's as real as the day is long.

      I'm not saying that the sequester isn't being milked for all its worth by all sides, but there are a heck of a lot of people that are facing a significant pay cut. And the politicians who are "forgoing" their pay get it back when/if they come to a resolution. The federal workers do not.

      --
      A house divided against itself cannot stand.
    33. Re:Chaos by fifedrum · · Score: 1

      my little world being one of the people who is paying for all this. Clearly, my point is invalid, and the politicians can't possibly be using these furlough notices for their own political gain. No politicain has ever done that, lied for gain, that would be inexcusable.

    34. Re:Chaos by pedestrian+crossing · · Score: 1

      Just to repeat, I'm not saying that the sequester isn't being milked for all its worth by all sides.

      I agree that a lot of this "sky is falling" stuff is crap. But it's disingenuous to claim that there are not a lot of ordinary people who are being negatively affected. Whether that's a side-effect of political posturing or not (hint: it is), it's real, contrary to your stated view.

      BTW, my little world is also being one of the people who is paying for all of this. Also my little world is closely associated with someone who is about to take a 20% pay cut because the legislative branch of our government refuses to do its job.

      --
      A house divided against itself cannot stand.
  4. Same old same old by Anonymous Coward · · Score: 5, Insightful

    Whenever a government department is threatened with cuts, they announce that they'll cut front-line staff and not overpaid managers or worthless paper-pushers. That's why government spending expands forever until the economy collapses.

    1. Re:Same old same old by daem0n1x · · Score: 2

      Unfortunately, the same can be said about private companies, or any other human organisation. Humans will be humans, you know.

    2. Re:Same old same old by JWW · · Score: 5, Insightful

      Bullshit. Private companies, when faced with budget shortfalls, make across the board budget cuts all the time. It's a very common tactic.

      This fear mongering is making me sick. $80 billion in cuts is going to "cripple" our $3.4 Trillion government? They are they lying their asses off.

    3. Re:Same old same old by shilly · · Score: 0, Flamebait

      This is not insightful. It's the sodding cause of the crisis. Ideological fucktards like this vote in ideological fucktard Teapartiers. These Teapartiers then say "We need to force these agencies to cut paper-pushers and not the front line" and so they implement a rule requiring across-the-board cuts with no discretion to apply more of the cut to one project or department than another. And what is the result of that? Do the fucktards who voted in the Teaparty fucktards now say "hurray for the teapartiers? At last we get to cut paper-pushers and not just frontline staff". As Mr Fucktard here shows, no they do not. Because their view was nothing to do with facts in the first place, and was all to do with masturbation for what passes for their minds. Of course, the unintended consequence is that many programs are required to become sub-scale, ie their output per dollar input falls due to lumpy scale curves with significant semi-variable and fixed costs. And all to satisfy a bunch of fucktards who have to be reminded to only use one side of the paper to wipe and *still* walk out the bathroom with shit on their fingers.

    4. Re:Same old same old by john.r.strohm · · Score: 5, Informative

      From a David Casey online newsletter, courtesy of a friend's blog:

      Lesson #1

      US Tax revenue: $2,170,000,000,000
      Federal budget: $3,820,000,000,000
      New debt: $1,650,000,000,000
      National debt: $14,271,000,000,000
      Recent budget cuts: $38,500,000,000

      Let’s now remove 8 zeros and pretend it’s a household budget:

      * Annual family income: $21,700
      * Money the family spent: $38,200
      * New debt on the credit card: $16,500
      * Outstanding balance on the credit card: $142,710
      * Total budget cuts so far: $385

    5. Re:Same old same old by Anonymous Coward · · Score: 0

      What? Budget cuts in private companies usually mean taking the employees' pension funds and funnelling them into golden parachutes and bonuses for executives.

    6. Re:Same old same old by john.r.strohm · · Score: 2

      Sorry, that should be Doug Casey. The URL for his piece is http://www.caseyresearch.com/cdd/lessons-argentine, the table is near the end.

      I got it from http://howardleeharkness.com/2013/01/how-did-we-get-in-this-mess/. He's an old friend. Note that he corrected one of Casey's numbers, where Casey slipped a decimal point.

    7. Re:Same old same old by halltk1983 · · Score: 1

      Like many rich folks, the government extended its budget so that it could barely get by on what it brings in. They need to learn to live within our means. Sure, it'll be a hard lesson to learn, but I'd rather make the sacrifice now than leave it to my kids to clean up in 30 years. Where are all the "think of the children" folks on things that actually matter?

      --
      Watch for Penguins, they eat Apples and throw rocks at Windows.
    8. Re:Same old same old by halltk1983 · · Score: 1

      I know. We should call in the Bobs from Office Space. Surely that would get things under control.

      --
      Watch for Penguins, they eat Apples and throw rocks at Windows.
    9. Re:Same old same old by Anonymous Coward · · Score: 0

      No, you don't get it. It's you that needs to learn to live within your means. That is what the sequester is all about. Taking from you and giving to banks and military industries.

    10. Re:Same old same old by Anonymous Coward · · Score: 0, Troll

      Private companies, when faced with budget shortfalls, make across the board budget cuts all the time.

      Bullshit. They close down some departments here and there and sack a few thousand workers, socialize any debt and get bailed out by the govt to the thunderous applause of the republicans and libertarians who see government supporting private industry as its only function and then they give massive pay increases and bonuses to the executives because they "saved the company"

      Wake up you moron.

    11. Re:Same old same old by JWW · · Score: 0

      Sure, the people who want the country to get back to spending within its means are fucktards, and the people who want to pile up deficits and debt forever are noble leaders.

      With all due respect your comment is a crock of shit.

    12. Re:Same old same old by Anonymous Coward · · Score: 0

      Yup, that's why US CEOs make hundreds of times more than the average worker even while their company fails.
      I call BS.

    13. Re:Same old same old by Celarent+Darii · · Score: 4, Interesting

      The analogy is interesting, but it fails in one crucial aspect. A family doesn't really own the money that they spend - their resources are necessarily limited as they do not own the source of the means of exchange (namely the money). If a family was to operate like the government does, it wouldn't last very long.

      However, by definition, a government is there to regulate the means of exchange, and thus is not limited to a budget in the same sense as a family is. The government can print money for instance, or regulate its worth by modifying the exchange rate with other economies, or even mandating fixed pricing on certain goods like gasoline. The government doesn't pay bills in the same way that a family does. So the question of a budget is not applicable in the same sense as for a family.

      So it might be an interesting analogy, but fails at the most crucial point - a government is responsible for the value of the currency, a family merely uses the currency of the government.

    14. Re:Same old same old by Impy+the+Impiuos+Imp · · Score: 2

      Similarly worthless school boards cut busses first to irritate the hell out of parents who then have to drive their kids.

      Every dollar is somebody's sob story, or some job we will all die without. Yet somehow we didn't have people dying in the streets a few years ago spending a trillion a year less.

      There are publicly-funded universities where the number of positions not related to teaching are over 50%. These are sinecure positions, a wonderful word borrowed from midieval religion to describe graft to feed church money into pockets for jobs "without care" to the mission of saving the soul.

      --
      (-1: Post disagrees with my already-settled worldview) is not a valid mod option.
    15. Re:Same old same old by JWW · · Score: 1

      That the government is responsible for the currency only makes their current way of doing things even more reprehensible.

      Every time the government borrows they are shrinking the value of the dollars in our pockets.

    16. Re:Same old same old by verifine · · Score: 1

      It's the latest manufactured crisis. Let it happen and see just how much a (partly) shut down government affects our lives. We might just make it permanent.

    17. Re:Same old same old by Anonymous Coward · · Score: 0

      Bullshit. Private companies, when faced with budget shortfalls, make across the board budget cuts all the time. It's a very common tactic.

      This fear mongering is making me sick. $80 billion in cuts is going to "cripple" our $3.4 Trillion government? They are they lying their asses off.

      No, but it will cause the productive folks in the DoD to seek better jobs

    18. Re:Same old same old by RNLockwood · · Score: 2

      Whenever a government department is threatened with cuts, they announce that they'll cut front-line staff and not overpaid managers or worthless paper-pushers. That's why government spending expands forever until the economy collapses.

      That's not how it works at all. First almost everyone is furloughed, that is, gets unpaid holidays. DoD will furlough their 800,000 civilian employees one day a week starting April 1. So 800,000 will loose 20% of their pay! Other Departments/Agencies my furlough more or less days per week or delay until after April 1. Of course employees don't spend what they don't get and the deductions for health plans and retirement stay the same. AFAIK the furloughs can last only 22 workdays or 30 calendar days and then a RIF (reduction in force starts automatically). When furloughs will start depends on the financial state of the Federal agency. Some, such as DoD will start at the earliest time, April 1. The Forest Service (US Dept. of Agriculture) will be able to hold off until 1 May or later, for instance.

      The reduction in force list is developed mostly by formula and depends on skills, seniority, military service, etc. I think that most of the lists have been (or are being compiled) but not released. An employee on the RIF list can 'bump' a an employee not on the list if the employee is qualified for the position (some other conditions, too) and then that employee can bump someone else and so on. RIFs are expensive in present but will result in savings in the future.

      It should be noted: “relative to the private sector, the federal workforce is less than half the size it was back in the 1950s and 1960s”
      http://fcw.com/Articles/2012/09/13/Size-federal-workforce.aspx?Page=2

      --
      Nate
    19. Re:Same old same old by Anonymous Coward · · Score: 1

      Sorry, not quite correct. The people who spent close to a trillion dollars, unbudgeted money, for the Iraq war are now complaining about spending. Simply because the other side holds the presidency now and they can use the debt as a political weapon, no worries that they played a major part in creating that debt.

    20. Re:Same old same old by grep_rocks · · Score: 1

      perfectly true - except for the fact that the "family" can borrow money at a rate below inflation and can print money at will - there is no comparison between family finances and a goverment that controls its own money - what a crock of shit

    21. Re:Same old same old by Anonymous Coward · · Score: 0

      Please post YOUR numnbers on how all this shit will go forward will ya?
      So with income a $2.4T and spending at $3.8T, you think we will all be better of at spending of $5T and a debt of $25T?
      Of which crock of shit are you speaking?

    22. Re:Same old same old by fifedrum · · Score: 1

      since when have Libertarians applauded corporate bailouts? Since never. The Libertarians didn't start the various bailout programs, the liberal republicans, and liberal democrats did.

    23. Re:Same old same old by Anonymous Coward · · Score: 0

      I work for the FAA as a electronics technician, and we've all been told to expect a 10% to 20% pay cut this year because of mandatory days off. I don't believe the government will be crippled in any way, but it's going to hit some folks very hard on a personal level. And all because Congress won't do their job.

      (Wonder what Congress' pay cut will be?)

    24. Re:Same old same old by Anonymous Coward · · Score: 0

      This family's salaries haven't kept pace with cost of living. Instead, the corporation has been taking an ever-greater slice of the pie. The family wanted to leave some of the corporation's budget for more families to come on board, but the corporation is pocketing most of the difference.

      Put another way, federal tax rates (as a percentage of GDP) throughout the past decade have been lower than just about any time in history since 1945. The tax burden has increasingly shifted towards the middle class as well.

    25. Re:Same old same old by Thunder6ix · · Score: 1

      The national debt is about $16.5 trillion now :( Keep that money printing!

    26. Re:Same old same old by Bartles · · Score: 0

      Did you have to go to school to learn how to twist the obvious so well? Argentina works the same way. How is that scheme working there?

    27. Re:Same old same old by Bartles · · Score: 1

      Rates yes, revenue no. Every time the president states that revenue must be part of the deal, he is clouding the issue. The government is certainly able to legislate tax rates, but has no control over tax revenue. Smart tax policy will increase revenue if it can be supported. Stupid tax policy will lead to lower revenue.

    28. Re:Same old same old by Bartles · · Score: 0

      Congress did it's job and passed two bills that would have stopped the sequester, you moron. Where's the solution from the President and the senate?

    29. Re:Same old same old by petermgreen · · Score: 2

      It should be noted: “relative to the private sector, the federal workforce is less than half the size it was back in the 1950s and 1960s”

      Does the "federal workforce" reffered to in that article reffer only to people who work directly for the government? Afaict there has been a trend away from the government directly paying people to do work for them and towards the government paying contractors to do it.

      --
      note: i'm known as plugwash most places but i screwd up registering that here somehow in the past and now can't register
    30. Re:Same old same old by Anonymous Coward · · Score: 0

      Unfortunately, the same can be said about private companies, or any other human organisation. Humans will be humans, you know.

      The same can be said about any *large* and *calcified* organization, but this doesn't meant it's an acceptable state of affairs. Instead of paltry 2.5% cuts, we should be looking at making deep (30-50%) cuts that necessitate layers of middle management either taking a hike or stepping up to the plate and performing. Failing that, cut entire departments and create new ones from the ground up that won't have these entrenched leeches.

    31. Re:Same old same old by emacs_abuser · · Score: 1

      Comparing the federal budget to a household budget is an idiots game.

      I should not have to explain why the analogy is dumb so I won't.

      Hope that helps.

    32. Re:Same old same old by SillyHamster · · Score: 2

      So it might be an interesting analogy, but fails at the most crucial point - a government is responsible for the value of the currency, a family merely uses the currency of the government.

      A gov't has limited control of the "value" of currency.

      If the gov't is printing money like there's no tomorrow, it triggers this effect called "hyperinflation" - and the value of money drops based both on the current amount in the market, and the expectation it will continue to drop in value.

      The gov't *can* use inflation pay its own bills; but it does tremendous economic harm to society because it really boils down to an obfuscated wealth tax. (That hits the poor and middle class the most)

    33. Re:Same old same old by daem0n1x · · Score: 1

      Value of currency rising is known as "deflation" and it's every economist and politician's worst nightmare. Not even the neoliberal economists, who live in a fantasy world and think inflation is the Antichrist, dare to defend deflation.

    34. Re:Same old same old by Anonymous Coward · · Score: 0

      The government can print money for instance, or regulate its worth by modifying the exchange rate with other economies, or even mandating fixed pricing on certain goods like gasoline.

        a government is responsible for the value of the currency, a family merely uses the currency of the government.

      Well, this isn't true. A family could print it's own currency. And as long as the perceived value of that currency was equal to the good or services rendered, the family could continue on. Credit is very similar to an individuals currency. It evaluates the individuals ability produce goods and services against future obligations.

      The huge difference is that, yes the government could just print money. However, printing money simply changes the perceived value of a good or service. Since the green back is fiat money, it holds no intrinsic value. So if the government or federal reserve doubles the money supply, the value of an apple doesn't change. Instead of the apple costing $1 it will now cost $2. The only way of change the true value of a good or service is to change either it's supply or demand. So, in a FREE MARKET, the government has no more DIRECT power than an individual.

      Finally, this is why Ron Paul supporters are so against fiat money. It is really a political game which brought a thriving Mexico into the dumps. In the 70's Mexican politicians figured out they can "buy" votes with printing money. All of a sudden the money supply was increased and you went from 5 pesos an hour to 100 pesos an hour. Before long you were paying 1000 pesos for an apple. The supply of apples didn't change, just the supply of fiat money. But some politicians got elected and got rich over it and 30 years later the Mexican people still have not recovered.

    35. Re:Same old same old by Anonymous Coward · · Score: 0

      See my previous post where I describe the difference between perceived value and intrinsic value.

      The government CAN change the perceived value of something through money.

    36. Re:Same old same old by SillyHamster · · Score: 1

      AC, what previous post? All of them? = P

      I'm not sure what you mean by intrinsic value; a cup of water is free to the average person, but worth everything to a man stranded in the desert. There is no intrinsic value to the water; value is assigned to it by individuals based on their needs and wants.

      You can average the value of everyone, but that still does not make it intrinsic to the object - it is all based on the perception by individuals.

      As for changing the "perceived value" of something, what gov't can do is change the "perceived value" of its currency, which changes the currency price people pay for the things they want. The value of those things is not dependent on currency, which is why inflation and deflation can happen at all.

    37. Re:Same old same old by RNLockwood · · Score: 1

      It should be noted: “relative to the private sector, the federal workforce is less than half the size it was back in the 1950s and 1960s”

      Does the "federal workforce" referred to in that article refer only to people who work directly for the government? Afaict there has been a trend away from the government directly paying people to do work for them and towards the government paying contractors to do it.

      Yes, federal workforce are those civilians who receive a Federal paycheck, but that can include permanent full time, career conditional (not yet permanent), temp, term, part time, interns, students, and seasonal (I think that's most of the categories). Right now this may not include the Judicial system nor the Postal Service - I'm not certain. Some agencies make use of agencies that provide contract workers but they are not 'federal workers'. With sequestration agencies may need to cancel some contracts that provide workers (or goods and services) and many seasonal workers will not be hired.

      I don't know how seasonals and workers other than permanent will be treated but expect that they can 'just' be let go more or less. There are also contracts for some jobs for "as needed" workers and I imagine that they won't be activated unless it's an emergency and then other employees man need to be furloughed to pay for them.

      --
      Nate
    38. Re:Same old same old by Celarent+Darii · · Score: 1

      Ad 1/ I don't think I was disputing that.

      Ad 2/ Well, if it is as you said that the Government exists to defend the Constitution, maybe they should look at Article 1, section 8, that is to say:

      The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;
      a/ To borrow money on the credit of the United States;
      b/ To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes;
      c/ To establish an uniform Rule of Naturalization, and uniform Laws on the subject of Bankruptcies throughout the United States;
      d/ To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;
      e/ To provide for the Punishment of counterfeiting the Securities and current Coin of the United States;

      That is to say, according to the Constitution the Government ought to regulate the means of exchange of goods within its jurisdiction. If the Government can't do this, it isn't governing.

      ad 4/ Your objection actually is self-contradictory: debasing is a manner of regulating the worth of something. By definition if you debase something you lower its value. The inverse can be done by regulating the cost of capital or reducing the amount in circulation.

      ad 5/ The government regulates the price of milk via marketing order regulations. If this were not done, no dairy farmer could afford to keep their cows. Yet because the government intervenes by fixing a minimum price for milk, many famers can sell their products in the market and still make a living. Not all price fixing results in a black market, and most price fixing is done because there is actually too much of a product on a market, or because it is deemed as something necessary for society.

      ad 7/ What do you mean by the phrase: " especially if that country's currency is counted to be 'reserve'". This sentence simply doesn't parse.

      ad 8/ A small government does not necessarily imply a better working government. It might not even be cheaper. There is more to government than just its size.

      ad 9/ Certainly, but if the dollar no longer buys something in your local store it is usually because there is no one guaranteeing the value of the currency. In Somalia many places don't take their currency, but will gladly take dollars because at least a dollar can get you something. Money has value in as much as there is a government assuring its value.

      ad 10/ I'll see your disdain and raise you a self-contradiction.

    39. Re:Same old same old by Anonymous Coward · · Score: 0

      Hey, that $80 billion could come directly from the $90 billion Green Energy budget! Problem solved!

    40. Re:Same old same old by Anonymous Coward · · Score: 0

      What agencies are protecting managers over front-line employees? I know the FBI is planning on hitting non-essential employees hardest, which includes secretaries and managers. The agents doing the actual casework are the last to get hit.

      Unless you have hard examples I don't think you should be modded insightful.

    41. Re:Same old same old by ChrisMaple · · Score: 1

      Deflation scares debtors, inflation scares savers who depend on their savings.

      --
      Contribute to civilization: ari.aynrand.org/donate
    42. Re:Same old same old by ChrisMaple · · Score: 1

      The government regulates the price of milk via marketing order regulations. If this were not done, no dairy farmer could afford to keep their cows.

      That's just stupid, and there are two flaws in the statement. One is the idea that people will always buy milk based on price. I can go into any local supermarket and see gallons of milk side-by-side selling for $2.50 to $4.00, and the expensive stuff isn't sitting there until it expires and being thrown out. The second is that all milk suppliers have the same costs, and that all will go out of business if price supports are removed. To the contrary, if supports are removed, some suppliers will go out of business and either slaughter their cattle or sell out to a more efficient supplier. The glut in supply being removed by the business failures, scarcity will cause prices to rise to the roughly the price they were before supports were removed, but probably a bit lower because more competent suppliers are active. There are many benefits to this: consumers get slightly lower prices, there are fewer people lobbying the government to distort the market, and incompetent suppliers are removed from their area of incompetence and forced to look for work where they are more effective. (Tough on them, but they're no longer stealing from the public at large.)

      --
      Contribute to civilization: ari.aynrand.org/donate
    43. Re:Same old same old by Anonymous Coward · · Score: 0

      Oh how sweet it is to see your ramblings consistently modded down to -1. Slashdot has finally come to its senses.

    44. Re:Same old same old by JWW · · Score: 1

      Someday the bond buyers will begin to fear that the US is incapable of paying off all its bonds. At that time the return rate on bonds will skyrocket and the game will be over.

      A country cannot borrow money below the rate of inflation forever..... Eventually the debt will be so high that the bondholders will have no confidence that they will get paid.

    45. Re:Same old same old by daem0n1x · · Score: 1

      Too much debt is noxious. Money hoarding is noxious.

    46. Re:Same old same old by Anonymous Coward · · Score: 0

      You don't "use inflation" to pay for stuff when you print money; there is no reason government can't stay within the current inflation target, while also making use of money creation.

      Government can use money creation to fund spending, and can still adjust taxation/spending/money-creation, so that it hits the same inflation target as last year; government does not need to spend at the same rate it taxes, in order to hit a specific inflation target.

      Once government spending is not limited by taxes, the question is no longer "Where does the money come from?", the question becomes "How much can we spend, while staying within the inflation target?", and "How much does spending on policy 'x', contribute to inflation?" and in general "How do we minimize inflation in the economy?".

      These are very different questions, which require a much closer look at the actual causes of inflation, and which require looking at how spending $x amount on policy A, may be less inflationary than spending the same amount on policy B.

    47. Re:Same old same old by Anonymous Coward · · Score: 0

      The liberals/conservatives give bailouts because the connected rich are okay with it. The liberals/conservatives are against giving the common people in America bailouts because it seems wrong to them and that's that.

    48. Re:Same old same old by Celarent+Darii · · Score: 1

      Perhaps you are not old enough to remember the times when farmers themselves poured milk in the street in the vain effort to raise prices. For a history lesson, perhaps start here :

      http://en.wikipedia.org/wiki/1933_Wisconsin_milk_strike

      For more information on the history of the dairy industry, I recommend this: http://pdic.tamu.edu/black/stillman.pdf

      The dairy industry is not simply a supply and demand equation. Any sane economic policy doesn't just rely on market pressures. Market pressures of themselves lead to the destruction of smaller businesses and the general liquidation of the middle class, by the simple fact that he who possesses more capital can remove the competition from the market by simply buying them out. For instance, in Poland recently Carlsburg bought several native breweries and immediately shut them down in order to control the market. The customers have no choice now to buy any other beer but theirs. With the consolidation of the different brands there is likewise a consolidation of production methods and in general the diversity of the market is impoverished. This is capitalism, where the small business simply has no ability to compete especially with the reality of debt and financing of capital are as they are today.

      By the fact that corporate mergers have not been regulated by the government, we have the absurd situation that certain businesses are now "to big to fail", and instead of the government governing the economy the economy is governed by businesses.

      To try to solve modern problems by returning to the economics of the 19th century is simply insane. What is more, the economic theories of the 19th century never worked very well to begin with - depressions were so dramatic and cyclical that people actually died of hunger. Thanks to several intelligent people who actually thought that government ought to try to regulate these things, people in the US and Europe in large measure haven't experienced hunger for the past 60 years. If you want a free market, might I suggest going to Somalia or any third world country lives according to the principles of least government. You won't get taxed, but you won't be making much money either.

    49. Re:Same old same old by JWW · · Score: 1

      You are correct with respect to republicans and excessive spending they are very guilty too.

      But the original post referenced Tea Partiers specifically and they have been staunchly anti spending and not truly in line with the republicans.

    50. Re:Same old same old by vandamme · · Score: 1

      When a city wants more tax revenue, they threaten to close a fire station. When a school wants more money (e.g., for another vice principal or two), they threaten football.

    51. Re:Same old same old by Anonymous Coward · · Score: 0

      I think roman_mir's karma is so bad he starts out at -1.

  5. the bizarre part to this by khallow · · Score: 3, Informative

    It's worth noting that all this discomfort only results in a drop of $85 billion. In part, that is because mandatory spending, which is something like 60% of the budget, isn't affected.

    Still, looking at the list, there's a number of worthy budget cuts, such as the oversized federal law enforcement, small business loans, and various "government service" rent seeking. And one really has a hard time arguing against a 13% cut back in defense spending.

    As I see it, the problem with sequestering isn't that it cuts government services, but that by its nature it can't target less effective spending or any mandatory spending at all.

    1. Re:the bizarre part to this by Rockoon · · Score: 3, Informative

      But do you really want congress to micromanage cuts? Think about that for a bit.

      The way this is working out, the secretaries and/or chiefs of each major department are going to make the choice of what is going to get cut within their department and thats surely better than having congress micromanage the cuts. The only time this isnt the case is with earmarked spending, and fuck most of that spending anyways.

      This is the only way cuts should be done, and cuts are much needed pretty much everywhere. Every department aside from NASA has ballooned out of control, and even in NASA's case some of the spending is highly dubious ($8 billion on the Webb telescope? Some serious, possibly criminal, inefficiency is happening here.)

      I think we would all like to see the DoD budget cut a lot more, but than in no way means that the DoE, DoA, DHS, FDA, .. and so forth should not also see major cuts.

      --
      "His name was James Damore."
    2. Re:the bizarre part to this by CAIMLAS · · Score: 1, Insightful

      It's worth noting that all this discomfort only results in a drop of $85 billion.

      As someone else said in this thread:

      It is a scam.
      They make sure the thing people care about get cut first.
      The things that really should be cut never get touched.
      We all get cowed into giving them more and more money.
      See how much of an automatic cut your senators pay gets.
      No, wait they still get an automatic raise

      It's structured for the very purpose of making 'budget cuts' seem like a waste of time. You'll never get to the creamy center because there's so much hard, baked on crud you've got to scrape off first - like a boiled lobster which is covered in coral growth.

      This is why we'll never see a de-funding of things like the IRS, anything else related to core government operations, or "governing body" luxuries. Why do we not talk about cutting money from Health and Human Services? Why do we not talk about defunding the Social Security Administration (even though the bulk of the funding to the SSA doesn't even make it to recipients of SS?) Government pensions are by far the biggest money soak - but of course, these will never be touched. God help our children and their children (due to the drastic increase in size/number of government employees in the past 4 years, there'll be a lot more people waiting in line for their pensions and fewer people to fill 'em).

      There's a lot of talk about the military, but the military and all DoD related spending isn't even half what these two are combined, and we've got precious little to show for it (and seemingly less year by year, as defense spending remains historically consistently flat, but shrinking slightly (since WWII).

      --
      ~/ssh slashdot.org ssh: connect to host slashdot.org port 22: too many beers
    3. Re:the bizarre part to this by JaredOfEuropa · · Score: 4, Insightful

      The problem, as pointed out by others, is that the department heads tend to cut the wrong things, deliberately. They make sure that it's the public rather than the department itself feeling necessity's sharp pinch. The Trashmaster General will not cut redundant management layers or cancel the 70 man junket to GarbageCon'13, but will instead reduce service levels and let the trash pile up in the streets. Not because it is easier (which it is), but because it will cause a public outcry so that, with a little luck, his budget will be back to its former levels the next year.

      Congress shouln't micromanage these cuts, but isn't it their job to make sure the secretaries cut the right things in the right way, and set them straight if they don't? (Not sure how that works; I am not from the US But don't worry, we're in the same boat over here).

      --
      If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
    4. Re:the bizarre part to this by Rockoon · · Score: 2

      The problem, as pointed out by others, is that the department heads tend to cut the wrong things, deliberately.

      There is a difference between conjecture and "pointing out." Most of these departments have never seen a budget cut through their entire history, where the oft-used term "cut" has historically meant a reduction in the rate of increase of their budgets rather than any actual budget cut.

      So as far as I can tell, you are just conjecturing that these departments will "cut the wrong things", that they have never actually been forced to cut before.

      --
      "His name was James Damore."
    5. Re:the bizarre part to this by fearofcarpet · · Score: 1

      Still, looking at the list, there's a number of worthy budget cuts, such as the oversized federal law enforcement, small business loans, and various "government service" rent seeking. And one really has a hard time arguing against a 13% cut back in defense spending.

      Except that cutting spending now is like applying leeches to a sick patient. You cut spending when the economy is healthy to promote action by the private sector. You increase spending when the economy is unhealthy to backstop the potential for long term unemployment, which can ruin entire generations. An across-the-board spending cut to almost any government agency will do far more harm than good, but research--because it draws so heavily on international talent--is the most vulnerable.

      After nearly a decade of back-door budget cuts to basic research funding during the Bush years, in 2007-2008 thousands of people were left stranded with years of education and training only to find academic positions evaporating as the housing crisis froze the funding for positions that were already being advertised for. In subsequent years positions that would normally receive on the order of a dozen applications were receiving hundreds. There was a little bubble with the stimulus, and then right back to strangling NSF, NIH, etc.

      That kind of uncertainty and hostility from Congress drives talent away from the US; Europe and Asia are still dumping money into research like crazy. Europeans and Asians used to compete to come to the US, hoping to land a position in the land of opportunity. Increasingly, they come for a degree or a postdoc and then head home for a better position and stable funding in a first-world country with modern infrastructure.

      Sure, it's only $85 billion, which is a rounding error in the total budget, but the force-multiplication of the way the sequester is applied will harm the US in the long term. And what is Washington concerned with? Finger-pointing, because carpet-bombing swing states with ads about whose fault the sequester was in the next election cycle is clearly more important to them than solving actual problems.

      --
      Actually, I wrote my thesis on life experience.
    6. Re:the bizarre part to this by JaredOfEuropa · · Score: 1

      I'm speaking from experience, which is not in the US. Budget cuts are common here, and the reaction of budget holders is frequently as described, though I should have written "threaten to" rather than "tend to", because those inappropriate measures are rarely actually carried out after the desired public outcry.

      --
      If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
    7. Re:the bizarre part to this by Anonymous Coward · · Score: 0

      This time the most egregious story I've heard it that due to cuts in inspectors they will have to close meat packing plants.
          Very clever move, but seems like a demonstration of the problem which caused the cut in the first place.

      The inaction it the Congress only reflects the fact that enough folks are pissed to gum up the works but not fix it.
          (Fix as in passing an actual, balanced budget.)

      They need to figure out how to wisely use the money they take through taxes and inflation.
            Given that, less money should provide much more lasting effect.
                Outside the beltway has figured that out, inside needs to as well.

      As for the example in the article, if they notched down the pay to each researcher 5%, things would work out.
            I say this because 2 recessions ago, we chose a 10% pay reduction instead of a force reduction.
                A few more hamburgers, but all worked out.

      Perhaps only burgers in the congressional dining rooms until they get the memo that all spending is discretionary.

    8. Re:the bizarre part to this by Anonymous Coward · · Score: 0

      applying leaches to this bloated patient might work pretty well

    9. Re:the bizarre part to this by khallow · · Score: 1

      So as far as I can tell, you are just conjecturing that these departments will "cut the wrong things", that they have never actually been forced to cut before.

      I have to agree with JaredOfEuropa. It's a classic move. To give an example related to what you mentioned earlier, NASA has on occasion threatened to cut more important or high profile programs in order to save their funding. For example, they've threatened to end Hubble Space Telescope on more than one occasion.

    10. Re:the bizarre part to this by msauve · · Score: 1

      "Congress shouln't micromanage these cuts, but isn't it their job to make sure the secretaries cut the right things in the right way,"

      No, that's the President's responsibility - he is, after all, head of the Executive branch of government.

      --
      "National Security is the chief cause of national insecurity." - Celine's First Law
    11. Re:the bizarre part to this by khallow · · Score: 0

      Except that cutting spending now is like applying leeches to a sick patient. You cut spending when the economy is healthy to promote action by the private sector. You increase spending when the economy is unhealthy to backstop the potential for long term unemployment, which can ruin entire generations. An across-the-board spending cut to almost any government agency will do far more harm than good, but research--because it draws so heavily on international talent--is the most vulnerable.

      Ignoring that the leech trick actually does work under certain circumstances, it's worth noting here that the economy probably has the potential to do better than it currently is even under the current legal and political environment, but a lot of what's holding it back is precisely the sort of thing that we're proposing to cut.

      Maybe cutting welfare for scientists isn't the best choice for first round budget trimming, but that budget does have to go down at some point. Else, you get in the situation where no one will lend money to the US government at nice rates and the science stopped being funded at that point.

    12. Re:the bizarre part to this by bogjobber · · Score: 2

      There's a lot of talk about the military, but the military and all DoD related spending isn't even half what these two are combined, and we've got precious little to show for it (and seemingly less year by year, as defense spending remains historically consistently flat, but shrinking slightly (since WWII).

      How do you figure? Military spending was less than $300 billion in 2000 and in the proposed 2013 budget is $672 billion. It's shrunk slightly since last year, but certainly not on a downward trend over the last decade. Or three. Or five.

    13. Re:the bizarre part to this by Anonymous Coward · · Score: 0

      "Most of these departments have never seen a budget cut through their entire history"

      Incorrect, but only partially. Many of these departments have never dealt with cuts, but many have, DOD certainly has. More-so when you get to more local levels and in such cases the observation is entirely accurate. When cities are faced with budget shortages they always cut front line police and fire first.

    14. Re:the bizarre part to this by fearofcarpet · · Score: 5, Informative

      Maybe cutting welfare for scientists isn't the best choice for first round budget trimming, but that budget does have to go down at some point.

      Welfare? Are you high? Investments in research consistently yield the highest returns of any form of investment because they generate the technology and IP that drives the entire modern economy, including keeping people healthy and living longer. Why do you think the DoD invests so much in research? It's because it produces technology that directly benefits every aspect of the military. Besides, welfare implies a handout in place of money that would otherwise be earned; i) scientists don't pocket that money, they use it to hire people (i.e., to "create jobs") and to purchase necessary equipment/infrastructure--it is definition of stimulative and ii) where else are you supposed to get $1 million to do fundamental research? Private companies and philanthropic organizations (and Defense) fund specific research goals that are near to technological application, not the zillions of person-hours of basic research on which they were built.

      If there is anything that a sane, rational government should spend money on, it is scientific research. And this isn't "the first round" of cuts for science, which have been under assault by Congress for years, but flies under the radar because ordinary people can't be bothered to see the connection between the plummeting quality and quantity of STEM in the US and research funding.

      Not to mention that the entire annual budget for the NSF is ~$8 billion, which is about how much money was just up and lost, in cash, in Iraq. The Pentagon probably blows $8 billion on toilet paper in a year.

      --
      Actually, I wrote my thesis on life experience.
    15. Re:the bizarre part to this by halltk1983 · · Score: 0

      The answer here is to bring in consultants. I'm actually not really kidding. Bring in folks to analyze the processes, trim the fat, and suggest streamlining improvements. Examples: Anyone who works with the public directly, have a screenshot taken of their screen every 15 minutes, randomly during that timeframe. If it's not focused on work, instead playing solitaire or facebook, and there are people waiting for service, that person gets one warning. If there is a second incident, then they are on the next round of workforce reduction. That makes sure the dead weight is what is removed. Managers that have the largest number of direct reports caught in such a fashion are also removed. Watch for average wait times, and average visit times at the window. Try to find ways to streamline things so that these are naturally lowered, not by badgering the employees for trying to help too much. Figure out where they're wasting their time. In a lot of cases, the employees themselves will tell you. "Well, my computer locks up for 30 minutes a day running this damn virus scan at 2PM, and it slows everything down to be unusable!" Solution: reschedule virus scan for 2 AM, and remotely configure the machine to boot at 1:45 AM for the virus scan, updates, and then shut down upon completion, as long as completion time is before 7 AM.

      They are steps that almost every major business has had to take during the recession, but the government is too big to fail. Streamline it. Make it more efficient. Cut the fat, and the people just holding jobs to collect a paycheck without actually working first.

      --
      Watch for Penguins, they eat Apples and throw rocks at Windows.
    16. Re:the bizarre part to this by TubeSteak · · Score: 2

      By law, the cuts must be equally applied to each program, project, and activity within an account, thereby not allowing agencies to use their discretion.

      You seem to be implicitly assuming that there is XY% of each program within every agency that can be trivially cut.
      You would be the hero of Washington if you could write down a list of all the people that can be fired without reducing each program's ability to meet its goals.

      This is why we'll never see a de-funding of things like the IRS, anything else related to core government operations, or "governing body" luxuries. Why do we not talk about cutting money from Health and Human Services? Why do we not talk about defunding the Social Security Administration (even though the bulk of the funding to the SSA doesn't even make it to recipients of SS?)

      Holy fucking shit. Who the hell defunds the IRS?
      Do you have another suggestion on how the government should be run? Bakesales and PBS funding drives?
      The IRS is by far the most efficient government agency for dollars spent vs dollars collected.

      And pray tell, why does one defund the Social Security Trust Fund?
      The trust fund that gets all its money from the social security payroll tax and not from anything else?
      Or are we just ignoring the historical events that led to the creation of the Social Security Administration?

      God help our children and their children (due to the drastic increase in size/number of government employees in the past 4 years, there'll be a lot more people waiting in line for their pensions and fewer people to fill 'em).

      Drastic increase? [Citation Needed]

      (Spoiler Alert: There has been no drastic increase)
      You really need to join us in the fact based world.
      The only "hard, baked on crud" you need to deal with are the layers of ideology clouding your vision.

      --
      [Fuck Beta]
      o0t!
    17. Re:the bizarre part to this by SirGarlon · · Score: 1

      They make sure that it's the public rather than the department itself feeling necessity's sharp pinch.

      All that is required to counteract this tactic is to anticipate it and be willing to fire bureaucrats. How does this sound:

      Year 1: Budget cut is announced, director of agency embarks on campaign of collective punishment against the public. There is public outcry.

      Year 2: Congress refuses to restore budget to pre-cut levels. Director continues his punitive war on productivity instead of cleaning house.

      Year 3: President fires director for poor performance. New director appointed with mandate to improve service within existing budget constraints.

      Year 4: If public outcry less than Year 1's level, continue business as usual. Else, go to Year 3.

      I'm just saying it's possible to do it this way, not that it's likely.

      --
      [Sir Garlon] is the marvellest knight that is now living, for he destroyeth many good knights, for he goeth invisible.
    18. Re:the bizarre part to this by Trailer+Trash · · Score: 1

      Furthermore, this budget cut takes us back to the federal spending level of, what, 2011? Was our country in such horrible shape a couple of years ago before we spent even more?

    19. Re:the bizarre part to this by Anonymous Coward · · Score: 0

      "This is why we'll never see a de-funding of things like the IRS"

      Cutting the IRS fundning will hurt us more than anything. Here is my source.

      http://www.irs.gov/uac/Newsroom/National-Taxpayer-Advocate-Delivers-2012-Annual-Report-to-Congress

      specifically...

      " On a budget of $11.8 billion, the IRS collected $2.52 trillion in FY 2012. That translates to an average return-on-investment (ROI) of about 214:1"

    20. Re:the bizarre part to this by Anonymous Coward · · Score: 0

      Watch for average wait times, and average visit times at the window. Try to find ways to streamline things so that these are naturally lowered, not by badgering the employees for trying to help too much.

      The first rule of measuring worker performance is that the you get what you measure.

      If you measure the visit times and want them faster, they will be faster. Your workers will do anything that they can do to get the customer out as fast as possible. It's simple survival of the fittest. Those who work diligently and don't game the system will get the axe because they have worse stats than those who do.

      You can say "don't badger those who help customers" as much as you want, but "customer satisfaction" is such a different thing to measure that it's just simpler to look at the easily-quantized average times. And those who have the slowest will be kicked out leaving the workers who are best in getting the customer out of the building.

    21. Re:the bizarre part to this by medcalf · · Score: 5, Informative
      It's called the Washington Monument defense, after the Interior Department's scheme to avoid being cut back in the Reagan administration. Reagan proposed cutting something like 5 or 10% of the Interior Department's budget, and getting rid of a lot of the small parcels of parkland that no one visits and that have no unique ecology or real value. The US government owns something like 25% of the land area of the US directly, and Reagan's idea was to get rid of a lot of the bits that didn't actually have value. Because the smart thing to do is to let the bureaucrats who know the ins and outs of all of this land pick what would go, Reagan deferred to the bureaucrats at Interior for a list of lands to sell off or give away. For example, there is a "park" that consists of something like 350 square feet of land, between two private parcels of land, in the middle of the Nevada desert, that the government owns because of a surveying error when the land was originally titled. This "park" has to be inspected regularly (required by law and policy), and there are maintenance costs (because of access right of ways, if I'm remembering correctly). There is zero value to the government in owning this, so naturally it should be on a list of land to be gotten rid of, right? Nope. The top of the list of things to close if these budget cuts went into effect was the Washington Monument.

      Keep that in mind when the Air Force says 2/3 of its aircraft would be grounded in months. Note that they don't mention laying off the valets who serve the general officers, or closing golf courses for senior officers, or getting rid of some of the fleet of executive jets that the Air Force maintains. It's called a "gold watch" in the military, but it's basically identical to the Washington Monument defense.

      --
      -- Two men say they're Jesus. One of them must be wrong. - Dire Straits
    22. Re:the bizarre part to this by usuallylost · · Score: 1

      There is an, unwritten, rule in Government that whenever you get cut you cut the thing that hurts the public the most. Sounds cynical but the logic is the quicker the pain for the public becomes unbearable they quicker they will accept a tax hike. I had a friend that worked at the DMV here. The state government cut their budget. What did the heads of DMV do they cut the front desk staff to the bone. So that people had hours long lines, even more than normal, and started complaining to the state government about. What they didn't do was anything to the behind the scenes people who were mostly just sitting there because their jobs were to process transactions entered by the front desk people. If they had cut those people proportionally the lines would have been much shorter and the place would have mostly just worked. The way they did it the state was able to justify a tax hike to restore the funding within a few months. You will see the same thing happen here. The same thing happens whenever you try to cut government budgets. After all from the point of view of the people making these decisions the choice is tax you more or pay me less. If you were given that choice which would you choose? So to some degree having congress micromanage the cuts is almost a necessity. Because if you don't the agencies will structure the cuts with an eye to protecting their budget allocations rather than an eye toward maintaining service with less.

    23. Re:the bizarre part to this by medcalf · · Score: 1

      You've obviously never worked around the government. Let me tell you how this would actually work. The people whose jobs are imperilled by any efficiencies the consultants find (bureaucrats) would be put in charge of managing the consultants. A raft of paperwork would be required for anything the consultants wanted to do. It would require approvals up to the Secretary level even to visit an office where someone works directly with the public. Every report turned in would be rejected based on some obscure requirement that had never previously been mentioned. (I once saw a consultant spend three months tracking down a regulation they were required to comply with, only to find out in the end that not only did it not exist, it had never existed.) If by some miracle the consultants nevertheless found some way of improving efficiency, they would be profusely thanked for helping the American people, and their report would be "summarized" to the funders in such a way that it was obvious that the department was already running at maximum efficiency and the only way to reduce the cost of the department, or its personnel, would be for Congressmen to personally strangle kittens on live TV in prime time.

      --
      -- Two men say they're Jesus. One of them must be wrong. - Dire Straits
    24. Re:the bizarre part to this by medcalf · · Score: 1

      He's likely speaking as a percentage of GDP, rather than absolute dollar terms.

      --
      -- Two men say they're Jesus. One of them must be wrong. - Dire Straits
    25. Re:the bizarre part to this by halltk1983 · · Score: 1

      I know how it *would* work. I was just suggesting an alternate that would be better...

      --
      Watch for Penguins, they eat Apples and throw rocks at Windows.
    26. Re:the bizarre part to this by halltk1983 · · Score: 1

      Note that I didn't say to trim the people taking a long time. I said to trim the people directly wasting time with games and social media. I said to trim systematic inefficiencies, allowing workers to get to a better overall time because they have to say "I'm sorry, our computers are so slow today" to the customer.

      --
      Watch for Penguins, they eat Apples and throw rocks at Windows.
    27. Re:the bizarre part to this by Anonymous Coward · · Score: 0

      Stolen/extorted funds aren't a "return on investment". Real businesses don't have the ability to threaten people with being locked in a cage for not "donating" to them; it's more of a mafia thing. And at least when they offer protection you get it, rather than random wars pissing off the entire middle east.

    28. Re:the bizarre part to this by BlueStrat · · Score: 1

      Except that cutting spending now is like applying leeches to a sick patient. You cut spending when the economy is healthy to promote action by the private sector.

      Better hurry and get in your time machine and go back to warn Presidents Coolidge and Harding that their ~46% cut in Federal spending won't really kick off the "roaring '20s" and end the post-WW1 recession of 1920-21.

      Strat

      --
      Progressivism (aka US 'Liberalism'): Ideas so good they need a police/surveillance-state to enforce.
    29. Re:the bizarre part to this by imac.usr · · Score: 1

      > the 70 man junket to GarbageCon'13

      Can you imagine the cosplay outfits? Yuck.

      --
      I use Macs for work, Linux for education, and Windows for cardplaying.
    30. Re:the bizarre part to this by fearofcarpet · · Score: 2

      Except that cutting spending now is like applying leeches to a sick patient. You cut spending when the economy is healthy to promote action by the private sector.

      Better hurry and get in your time machine and go back to warn Presidents Coolidge and Harding that their ~46% cut in Federal spending won't really kick off the "roaring '20s" and end the post-WW1 recession of 1920-21.

      Strat

      You're comparing a 7-month recession to the meltdown of the entire global economy? Alright, then why didn't the end of the Iraq war lead to booming economy like WWII? I mean, if we're making false equivalencies... At any rate it was Coolidge that slashed spending and taxes after he took office 1923, when the economy was going gangbusters thanks in large part to the automobile and electrification, which was exactly the right time to cut; the economy was healthy and taxes were still stuck at high war-time levels, along with spending. He also slashed top tax rates further in 1926, citing that "tax cuts lead to an increase in revenue, so more tax cuts should lead to more revenue," (I'm obviously paraphrasing) which makes him a conservative hero--the first supply-side president! They, of course, don't like to tell the rest of that story; that rampant deregulation under Coolidge inflated a huge bubble in the financial sector that precipitated the Great Depression... wait, that sounds familiar somehow.

      --
      Actually, I wrote my thesis on life experience.
    31. Re:the bizarre part to this by medcalf · · Score: 1

      Well, OK, but if wishes were horses.... Alternatives which cannot be implemented to attain their desired ends are not actually alternatives.

      --
      -- Two men say they're Jesus. One of them must be wrong. - Dire Straits
    32. Re:the bizarre part to this by WrongMonkey · · Score: 1

      For example, there is a "park" that consists of something like 350 square feet of land, between two private parcels of land, in the middle of the Nevada desert, that the government owns because of a surveying error when the land was originally titled.

      I would be very interested to know what that "park" in Nevada is. 86% of Nevada is owned by the various agencies of the US Federal government. 76% of the state is BLM land, which which is essentially unmanaged and unmantained. Nearly all of the private land is near the major cities. The only parks are Great Basin National Park (est. 1986) and Death Valley (est. 1994), both established recently enough that I doubt there were major, incorrectable survey errors. My point is that there is very little private land in the middle of the desert, let alone two parcel of private land with a phantom park in between them. I'll grant the benefit of the doubt, but your story just doesn't ring true.

    33. Re:the bizarre part to this by Anonymous Coward · · Score: 0

      All of our elected officials are disingenuous pricks, but watching Obama stand with a bunch of firefighters talk about how if we sequester they're the first things to go makes my blood boil. I'm a volunteer firefighter in a small town in Southern NH. Several years ago we were mandated by DHS to buy some fancy radios for emergency communications. The radios were nearly $2000 each. We were given a grant, and told to buy 30 of them. We were furthermore told that we were responsible for maintenance and replacement if lost. Here's a newsflash: firefighters break shit and lose things. They old saying is that if you put a firefighter along in an empty room with two solid steel balls, he will break one and lose the other. So naturally we never touch these radios. We never use them. We never train with them. If we lose just one we've just lost the opportunity to buy an AED or a new Scott Pack. There are dozens of volunteer department in NH, and every one I travel to has those radios; some of them display them behind glass like trophies. Easily 1000 radios across the state, a cool $2M. Care to estimate how many are spread across this great nation?

      There's fat in the budget. Ridiculous, nepotistic, backslapping, lobbied favored. You could cut $100B out of the Federal government and 99% of the people in the US would not even know. But of course you go after the FF and police and nurses first. Dear Christ, cut so much as a dollar from the FDA and we'll all be eating horse meat inside of a week! Fuckers.

      CAPTCHA: Coronary

    34. Re:the bizarre part to this by Anonymous Coward · · Score: 1

      The Obama Administration is lumping the costs of being in Iraq and Afghanistan in the standard DoD budget instead of treating them as separate budget items. Also, Clinton cut the hell out of the DoD's capabilities. In 1991, we had no problem mobilizing and putting a million people in Saudi Arabia for Desert Storm, yet in 2003 on onward, people were complaining that the 120-160K people that we had in Iraq & Afghanistan was causing our forces to be "stretched too thin".

    35. Re:the bizarre part to this by Anonymous Coward · · Score: 0

      Hell, $8 billion is probably the level of Medicare fraud each month or the amount lost to able bodied individuals on SS disability each year. Entitlements ripe with fraud need to be cut, not R&D.

    36. Re:the bizarre part to this by khallow · · Score: 1

      We were furthermore told that we were responsible for maintenance and replacement if lost.

      This is a classic public funding move. Put a ton of money into buying some hardware or infrastructure, but don't allocate a cent for maintenance or replacement.

    37. Re:the bizarre part to this by khallow · · Score: 1

      If government spends money efficiently only on good things, then sure you have a point. It doesn't. At this point, I habitually divide reported costs by ten to estimate the actual cost of publicly funded research projects in the US. Sometimes even that is still too high. But since research is generally considered to generate the "highest returns", I doubt enough people will look closely at research efficiency until the money dries up due to fiscal issues.

    38. Re:the bizarre part to this by DNS-and-BIND · · Score: 1

      Waitaminute - the US government owns 86% of the land in Nevada, and you find it unbelievable that a survey error happened? WTF

      --
      Shutting down free speech with violence isn't fighting fascism. It IS fascism!
    39. Re:the bizarre part to this by Anonymous Coward · · Score: 0

      It's called the Washington Monument defense, after the Interior Department's scheme to avoid being cut back in the Reagan administration.

      Umm, what your talking about only happened back in 1969 and the monument was closed for just two days, not sold. The guy who did it was fire. I did some searches and I can't find any confirmation of your story which has reached mythological proportions.

    40. Re:the bizarre part to this by tibman · · Score: 1

      The difference was the duration. If 1/4 of the US Army is deployed on year long tours then you will start having problems in years three and four. You have to factor in the months of mobilization prior to deployment (all the equipment and vehicles) and the months of recovery post deployment.

      I think we can agree on money though. It was stupid how much we paid contractors.

      --
      http://soylentnews.org/~tibman
    41. Re:the bizarre part to this by ChrisMaple · · Score: 1

      Year 2000 was the end of 8 years of Clinton crippling the military.

      --
      Contribute to civilization: ari.aynrand.org/donate
    42. Re:the bizarre part to this by ChrisMaple · · Score: 1

      Research topics need to be examined. There's a lot of BS research going on that should be eliminated.

      --
      Contribute to civilization: ari.aynrand.org/donate
    43. Re:the bizarre part to this by ChrisMaple · · Score: 1

      The Iraq war is in no way commensurate with WWII. WWII was an all-out effort that deeply affected everybody in the US. Iraq could have gone unnoticed if a person didn't follow the news. WWII devastated much of the productive ability of Europe and Japan, leaving the US with a dominant industrial base. For a number of years, the US was the dominant supplier of goods, and in that period the US economy did very well. Iraq had no significant effect on the worldwide production capability.

      The severity of a depression depends strongly on how the government responds to it and how big a pustule the government had allowed to develop in the first place. Harding/Coolidge and Reagan responded properly and the economy recovered and boomed. Hoover/FDR and Obama did the wrong thing and disaster has followed. Carter and Bush Jr/Congress allowed a bad situation to fester. Wilson created a bad situation.

      --
      Contribute to civilization: ari.aynrand.org/donate
    44. Re:the bizarre part to this by Anonymous Coward · · Score: 0

      Why do we not talk about defunding the Social Security Administration (even though the bulk of the funding to the SSA doesn't even make it to recipients of SS?)

      99% of the money collected by the Social Security tax is paid out to recipients. Since 1989 SS administrative costs have been 1% or less. Since 1957 it's never been higher than 2.3%. Here's the table.

    45. Re:the bizarre part to this by Anonymous Coward · · Score: 0

      One man's BS is another's sine de qua non. Restricting researchers subjects too much risks missing something important or serendipitous.

  6. System working as intended by Anonymous Coward · · Score: 0

    The US has got 425 dollar billionaires, 34% of the world's total.

    Relax, America is still number 1 where it counts.

  7. It's a scam. by Beer_Smurf · · Score: 4, Insightful

    It is a scam.
    They make sure the thing people care about get cut first.
    The things that really should be cut never get touched.
    We all get cowed into giving them more and more money.
    See how much of an automatic cut your senators pay gets.
    No, wait they still get an automatic raise
    Makes me crazy.

    1. Re:It's a scam. by Anonymous Coward · · Score: 0, Informative

      Nothing is getting cut. Period.

      In all cases, they're getting more money than they got last year. Except that instead of an 8% increase, they're getting a 6% increase. And that's what the socialist in the White House is calling a "cut".

    2. Re:It's a scam. by Anonymous Coward · · Score: 0

      Absolute bullshit. At Department of Energy labs, they are internally warning of employee furloughs and making new grants dependent on whether there is any money in the bank. The dollar funding for them would go down in any terms.

    3. Re:It's a scam. by RicktheBrick · · Score: 1

      It is the same with raising taxes on the rich. Instead of them being 8% richer next year they might be only 6% richer.

    4. Re:It's a scam. by Anonymous Coward · · Score: 0

      Bull. Based on the numbers we getting from the higher ups, it looks like our particular unit will be funded at about 18% less than last year. How is that not a cut?

  8. TSA/HL by Loki_666 · · Score: 3, Interesting

    So when do they disband the TSA and Fatherland^H^H^H^H^H^H^H^H^H^H Homeland security?

    1. Re:TSA/HL by Anonymous Coward · · Score: 0

      Holy crap, no wonder your typing speed is dropping in the /. poll, you could have just backspaced over "Father"

  9. Standard threat to core services by AlienSexist · · Score: 1

    Notice how whenever there is a push to raise taxes, or pass some budget, how the people are always threatened with sacrifices to core services. Airport security, food safety, firefighter equipment, books for school children and so on. Never are absurd government programs in any such danger. They always grab you by the balls and squeeze. Pay up or else.

    1. Re:Standard threat to core services by Anonymous Coward · · Score: 0

      Notice how whenever there is a push to raise taxes, or pass some budget, how the people are always threatened with sacrifices to core services. Airport security, food safety, firefighter equipment, books for school children and so on. Never are absurd government programs in any such danger. They always grab you by the balls and squeeze. Pay up or else.

      It must be a conspiracy. To, um, keep all those absurd government programs we hear about. You know, the ones that take up so much of the budget. Like, well, hmm, you know what I mean....

  10. Great Time For Other Countries by Greyfox · · Score: 1

    There are going to be a lot of defense contractors being laid off. Great time for China and other countries to go on a hiring spree! These are the guys insuring America's technological superiority in that segment, and I'm sure a lot of them would jump at an opportunity to continue feeding their families!

    --

    I'm trying to teach myself to set people on fire with my mind... Is it hot in here?

    1. Re:Great Time For Other Countries by gatkinso · · Score: 1

      More likely we just ship the current Chinese et al H1B holders home.

      --
      I am very small, utmostly microscopic.
  11. It's a 3% cut by Anonymous Coward · · Score: 0

    Buy fewer office supplies and move on with your life.

  12. How were all these things paid for? by EmagGeek · · Score: 5, Informative

    Just a few years ago, the budget was 2/3 of what it is now, so how were food inspections paid for then?

    Most people don't realize that this big deficit spending problem started when the $787B "one time stimulus" became part of the baseline budget and was re-spent (and then some) year after year after year on the biggest government expansion ever seen on this Earth. That $787B is STILL being spent over and over again.

    Bond Bubble Ben is still printing Bernanke Bucks at a rate of about $1T/year as well, because the FED is the only entity willing to buy new US debt anymore.

    When are Americans going to wake up and realize that you can't spend money you don't have on things you neither want nor need and expect to come out ahead at the end of the day?

    I guess "as long as I'm getting mine" is the new American Dream.

    Here are some gross, as in disgusting, numbers for US Government Spending:

    2006: 2655.1B
    2007: 2728.7B
    2008: 2982.5B
    2009: 3517.7B
    2010: 3456.2B
    2011: 3598.1B

    2001: 1862.8B

    If you take the 2001 spending figure and adjust it for inflation, it is 2411B, so in 2011 dollars we're spending 1186B more than we were in 2001.

    1.2T in government growth, people. That's 49%. And that's just government growth at the federal level. Government is taking fully 50% more money from us (and our kids, and their kids, and probably also their kids after that) than they were 10 years ago.

    Sources:

    http://www.cbo.gov/sites/default/files/cbofiles/attachments/HistoricalBudgetData.xls

    ftp://ftp.bls.gov/pub/special.requests/cpi/cpiai.txt

    1. Re:How were all these things paid for? by Anonymous Coward · · Score: 4, Interesting

      Now be intellectually honest and admit a bunch of that money increase is simply that black spending is now not removed from the books like it was in Bush' time. Once you add black spending in, the amount spent as a % of GDP has been dropping.

    2. Re:How were all these things paid for? by Anonymous Coward · · Score: 2, Informative

      First of all, as the sibling notes, those budget numbers don't include Bush's war budgets, which were designated as a "supplemental" budget. Bush's budgets were much higher than published. And 2001 was still at the height of the dot-com bubble, when the economy was very strong.

      And the economy is still relatively weak. Ask most economists; during a recession, do you cut spending, or increase spending to stimulate the economy? Most would agree that deficit spending is necessary to prevent a bigger crash.

    3. Re:How were all these things paid for? by Anonymous Coward · · Score: 0

      Debt, debt, debt, debt. The same way everything else is getting paid for. We haven't learned a thing from the dozens of market crashes, debt related problems, 'bond issues', pump-and-dump schemes, etc, etc. NONE of what any government doing at the moment is going to make the slightest difference and anyone who can count can tell you that.

    4. Re:How were all these things paid for? by davide+marney · · Score: 1

      "How could I be overdrawn? I still have checks in my checkbook!"
      "How could we still be in a recession? We're still stimulating it!"

      --
      "We receive as friendly that which agrees with, we resist with dislike that which opposes us" - Faraday
    5. Re:How were all these things paid for? by dwpro · · Score: 1

      The majority of the budget deficit and increase in spending can be blamed on 4 major items:

      1. The war in iraq
      2. Bush era tax cuts
      3. Financial collapse and related stimulus spending
      4. Ever increasing health care costs

      http://graphics8.nytimes.com/images/2011/07/24/opinion/sunday/24editorial_graph2/24editorial_graph2-popup.gif

      This isn't a democratic only spending spree though they're to blame as well. I'd say more blame could be heaped on the government for poor decisions on which risks/investments are worth the reward in the realm of defense, health care, stimulus, and financial regulation.

      --
      Millions long for immortality who do not know what to do with themselves on a rainy Sunday afternoon. -- Susan Ertz
    6. Re:How were all these things paid for? by Impy+the+Impiuos+Imp · · Score: 5, Interesting

      Dude, we're borrowing almost 2x the entire defense department.

      We are borrowing 90% of an entire aircraft carrier, $4 billion, per day.

      You could cancel the entire DOD, and tax 100% of the income of the rich, and you would still be $100 billion a year short.

      --
      (-1: Post disagrees with my already-settled worldview) is not a valid mod option.
    7. Re:How were all these things paid for? by Anonymous Coward · · Score: 0

      The war in Iraq is over, so we're not spending on that.
      The Bush era tax cuts on the wealthy have been increased, and since the Democrats argued that where all the real money went, they've got nothing left to complain about.
      The stimulus spending is supposed to be long since over.

      So why is the deficit still ~$1 trillion? You can't tell me that health care costs increased that much in the four years since Obama took office.

    8. Re:How were all these things paid for? by dwpro · · Score: 1

      There is some additional growth in govt and spending, particularly in the security arena that I'd be all for cutting dramatically (I'm looking at you DHS). However, a bigger issue is that the economy is still recovering, so tax revenues are still low.

      This article explains it decently (and has original image I linked):

      http://www.nytimes.com/2011/07/24/opinion/sunday/24sun4.html

      --
      Millions long for immortality who do not know what to do with themselves on a rainy Sunday afternoon. -- Susan Ertz
    9. Re:How were all these things paid for? by QuantumRiff · · Score: 1

      Funny that before the 2009 budget year, the wars in Iraq and Afganistan were not part of the federal budget. Every year since 2001, they were part of a separate "emergency" spending bill. The current president thought that was not proper, and put them into the actual defense budget.

      --

      What are we going to do tonight Brain?
    10. Re:How were all these things paid for? by Anonymous Coward · · Score: 0

      That's probably true on some level but we're also in the middle of a recession, with tax revenues artificially low and spending artificially high. And our borrowing vs expenditure doesn't give us the same level of public services we see in other countries.

    11. Re:How were all these things paid for? by Anonymous Coward · · Score: 0

      "Most people don't realize that this big deficit spending problem started when the $787B "one time stimulus" became part of the baseline budget and was re-spent"

      1) that "one time stimulus" spending was initiated by Bush, and continued by Obama's administration. BOTH parties at the time considered it the right thing to do to avoid an even worse economic situation from developing. We'll never know just how bad it might have gotten if no stimulus had been implemented, but the consensus is: a lot worse;
      2) the "big deficit spending" problem began in the 2000s, during the implementation of something now known as the "Bush era tax cuts", which still exist for most people. It reversed the budget balance or surpluses that had existed in prior years (notice the sharp turn in the graph at about 2001), and the budget has consistently been on the negative side ever since. This was also the time when, according to the VP of the day, "deficits don't matter". Coincidentally, all three branches of the federal government were controlled by one party at the time and approved the changes.
      3) We can argue endlessly about which change (stimulus or tax cuts without service cuts) was worse, but it's a shared problem that did NOT begin in merely 2008, and it's rather telling that your "zero point" for comparison is 2001.

      Americans need to wake up and do one or two things: realize they need to spend less and make due with fewer services, realize they need to spend more for the services they insist on having. Or some sensible combination.

    12. Re:How were all these things paid for? by Anonymous Coward · · Score: 0

      Dude, we're borrowing almost 2x the entire defense department.

      So your position is that the US federal government is borrowing 3.27 million dollars (DOD as 30% of the budget*2)per man, woman, child, and undocumented immigrant per year? From whom? For what? Money does not disappear. Where is it? Who has it now? Don't you dare say China. First it is patently false as they are not the top US debt holder, and secondly that would give every man, woman, and child in china a salary of 800k USD per year. Why would they bother making iPads for a buck and a quarter an hour if they were all millionaires already? So where is the money? Where is the debt?

    13. Re:How were all these things paid for? by EmagGeek · · Score: 1

      The numbers I posted DO include war spending. The numbers come from actual CBO tallies of all outlays, not just budgetary outlays.

    14. Re:How were all these things paid for? by LanMan04 · · Score: 1

      Bond Bubble Ben is still printing Bernanke Bucks at a rate of about $1T/year as well, because the FED is the only entity willing to buy new US debt anymore.

      Uh, no.

      http://online.wsj.com/article/SB10000872396390443437504577546760997508398.html

      Investors rushed into U.S. Treasury debt for safety, sending bond yields to record lows for a second straight session. ...
      The U.S. government is a big winner as it continues to borrow cheaply to finance its large fiscal shortfall. The Treasury Department sold $35 billion two-year notes at a record-low yield of 0.22% Tuesday, a good start to this week's $99 billion in new supply of notes.

      --
      With the first link, the chain is forged.
    15. Re:How were all these things paid for? by Anonymous Coward · · Score: 0

      Actually, the war budgets were still included in those numbers as are the funds spent on the "mandatory spending" categories (SS, Medicare/Medicaid, interest on the debt, pensions, anti-poverty entitlements, etc). None of those items are on "the Budget" that Congress fights over every year either, even though they make up at least 60% of what the Federal Government is spending.

    16. Re:How were all these things paid for? by Anonymous Coward · · Score: 0

      This isn't about who likes what party. It's about the amount of spending that the government is doing. Who cares if the years go forward or back slightly, or whose party was in power at the time?

      Be intellectually honest and talk about the problem, not try to deflect by implying that it was the other guy who was at fault.

    17. Re:How were all these things paid for? by Anonymous Coward · · Score: 0

      Items 1&2 would be a part of the spending prior to 2008 and #1 is on the decrease. Even if #4 was attributed to half of that increase (which I doubt), the 2009 stimulus gave the Feds a blank check where they increased spending across the board and obliterated many of the Clinton era welfare reforms. Many parts of the 2009 budget were supposed to be passed prior to Oct 2008, but the Congressional leaders postponed them until after the inauguration because they knew they would be able to pad them even more (which they did). Just imagine the outcry if instead of just cutting a mere $85B, the following was being done: ddjust the FY2008 budget for inflation and limit spending to those levels.

    18. Re:How were all these things paid for? by Anonymous Coward · · Score: 0

      Why does it seem to be a recurring theme that everytime someone points out their own intellect they follow it up by proving how much they don't have?

    19. Re:How were all these things paid for? by Anonymous Coward · · Score: 0

      So which part do you want to cut? I've yet to hear from anyone complaining about the size of government any substantial part they want to cut. They always complain about the little tiny wedges on the top left.

  13. very misleading. by Anonymous Coward · · Score: 0

    Only 22 billion in cuts. Even if people get 'furloughed' for while, if they are essential they are still required to come into work (without pay). But don't you worry, because they have always gotten their backpay when the checks start rolling out again.

    This is only more of the OH SH!T YOU'RE ALL GOING TO DIE IN A FIRE BECAUSE OF SEQUESTERING bullsh!t rhetoric. It's only 22 billion dollars and that's chump change compared to how much they waste a year.

    Stop spending money you don't have, stop printing money, and tighten your belt. Things would improve if President Obama would stop acting like it's his sweet sixteen party and he's got daddy's credit card.

  14. Lame-ass politics stories by DNS-and-BIND · · Score: 1

    I never thought I would be sorry to see CmdrTaco go, but these sorts of non-nerds stories are here all the time now. Come ON, the federal budget? Gahhh...

    --
    Shutting down free speech with violence isn't fighting fascism. It IS fascism!
    1. Re:Lame-ass politics stories by jbeaupre · · Score: 2

      Yeah, just another Goth article about cutting.

      --
      The world is made by those who show up for the job.
    2. Re:Lame-ass politics stories by Anonymous Coward · · Score: 0

      It may not be something you think about every day and care to read about; but this is certainly stuff that matters to you personally and to your family and others you care for, believe it.

      I'm curious, do you know who Cloward and Piven are? Have a look and understand that Obama was at Columbia at the same time, this is not a theory that will be news to him. Is this his plan? I can't answer that.

      But if it looks like shit, smells like shit, feels like shit, tastes like shit, it's hard to say it's ice cream.

    3. Re:Lame-ass politics stories by Nidi62 · · Score: 1

      Because nerds are obviously immune to political developments, such as reduced funds available for research, or taxes changing, or laws affecting freedom of speech, privacy, or copyright/patents. You're right, all of these politics stories are so non-nerdy.

      --
      The only thing necessary for evil to triumph is for it to be pitted against a slightly greater evil
  15. i for one welcome the sequestration by Anonymous Coward · · Score: 0

    my only wish is that it happened a decade ago

  16. there are no cuts by dabridgham · · Score: 1

    The things is, as far as I can tell there are no actual cuts in spending. It's simply that they're going to get a 5% increase in spending instead of an 8% increase and they're calling that a 3% cut and claiming the sky will fall. It shouldn't surprise me that we fall for this but it does.

    1. Re:there are no cuts by Anonymous Coward · · Score: 0

      Seems like a good number of people on /. realize this. Now if only our president did. I want a reporter to ask Carney "Isn't it true that sequestration is only decreasing how much the budget will go -up- year?"

      It's like somebody finding out their pay raise isn't going to be as big as they thought and having to give up buying a new boat. Whoop-de-do.

    2. Re:there are no cuts by night_flyer · · Score: 1

      He understands it just fine, he's using scare tactics to make political hay

      --


      Thanks to file sharing, I purchase more CDs
      Thanks to the RIAA, I buy them used...
  17. Well I guess the H1B visa holders can go home by gatkinso · · Score: 1

    Sounds like plenty of American engineers will be looking for work.

    --
    I am very small, utmostly microscopic.
    1. Re:Well I guess the H1B visa holders can go home by Anonymous Coward · · Score: 0

      Sounds like plenty of American engineers will be looking for work.

      No. Americans won't meet the HR requirement that they be desperate to cling on to a job or be deported.

  18. Good riddance by Anonymous Coward · · Score: 0

    I for one look forward to all the panicky idiots finally seeing how little we need all the worthless crap they waste our money on.

  19. Full of it by Anonymous Coward · · Score: 0

    They're full of it, the sky is going to fall, babies will die, heaven won't accept anymore souls, hell is frozen over, etc, etc........ They have a 14 trillion dollar faux budget (since they haven't actually budgeted jack shit in five years now!) and 84 billion is a drop in the bucket of ADDED money since the work on baseline budgeting which works based on projected growth of everything in the government. The federal government is a parasitic tumor on all of our backs that needs to be cut off. /rant

  20. Research is a stupid place to cut money by damn_registrars · · Score: 1

    The economic payout of federal research investment averages around 8:1 in terms of job creation, new revenue, trade, etc. Even research that doesn't lead to new therapeutic modalities still puts people to work and can aid in other research endeavors. There are places in the federal budget with poor payout that deserve to be explored for savings, but research is not one.

    --
    Damn_registrars has no butt-hole. Damn_registrars has no use for a butt-hole.
    1. Re:Research is a stupid place to cut money by gatkinso · · Score: 1

      Well, had you been keeping up with events, you would know that the cuts are basically across the board, not just focused on R&D.

      The entire concept was a blunt instrument that was meant to be too draconian and indiscriminate to even consider going into effect. Well, we see how that worked.

      --
      I am very small, utmostly microscopic.
    2. Re:Research is a stupid place to cut money by damn_registrars · · Score: 1

      Well, had you been keeping up with events, you would know that the cuts are basically across the board, not just focused on R&D.

      I am well aware of that. However this summary is talking about how the budget sequestration will affect research agencies, so I wanted to point out what an epically stupid idea it is to cut research funding at any point. A few things are distinct to the research funding agencies that cannot be said about other federal agencies:

      • Research agencies have not had a budgetary increase that even met the rate of inflation for several years
      • Research dollars directly create jobs and save lives
      • As mentioned before, the ROI in purely dollars-for-dollars from research funding far exceeds that of any other section of the federal budget

      In other words, cutting the research budget does not help anyone. It puts more people on unemployment, sends more research to foreign countries, and slows manufacturing development as well. If we truly want to improve the federal budget situation we should be increasing, not decreasing, the research budgets.

      --
      Damn_registrars has no butt-hole. Damn_registrars has no use for a butt-hole.
    3. Re:Research is a stupid place to cut money by Biosci777 · · Score: 1

      When I left my job at a university for one in the federal government doing research, my pay went up a little, but money for expenditures jumped 200%. We've had to cut back a little in the last couple of years and this year will be no different, but it only means we can't be as extravagant in which reagents we purchase. There are no furloughs expected in our research division. As others have said, this is all about using fear to manipulate the populace.

  21. These aren't spending cuts by Anonymous Coward · · Score: 0

    They're decreases in how much spending will go -up-.

  22. Not $85 billion by blogagog · · Score: 5, Informative

    The automatic sequestration will only remove $44 billion from this year's budget. Bigger cuts will occur in later years. But you should know that the government will still spend more this year than last, despite the sequestration. It's just that the increase won't be as much. The crying of poverty is just political BS.

    1. Re:Not $85 billion by davide+marney · · Score: 2

      Mod parent up. In Washington-speak, a "catastrophic" budget cut means a cut to the rate of increase. The rollback of the $44B of planned increased spending in this year's budget is just slightly over 1% of the total. Heck, every wage-earner in the country just had their taxes increase by double that amount with the ending of the payroll tax holiday, so cry me a river. I have zero sympathy.

      --
      "We receive as friendly that which agrees with, we resist with dislike that which opposes us" - Faraday
    2. Re:Not $85 billion by LurkingSince1999 · · Score: 0

      This! Not a real budget cut, but simply a reduction in the growth of spending. However, I, as a DoD civilian will personally take a 10% cut in my salary this Fiscal Year. The politics of going after the people first doesn't sit well with most of us rank-and-file types. You know, the non-political 99% of government that's really just trying to make this country better despite what the congress and WH do.

      There are plenty of things the gov't could stop doing or buying that would more than cover that $44B, but once gov't gets its hands on something it has a really hard time letting go. Personally, I think the Federal Government should be doing only about half of what it's doing right no,w, but it will never abdicate those roles.

  23. Phony spending cut, phony panic by Freddybear · · Score: 3, Insightful

    They aren't really cutting spending. Spending will still increase, just not as much as they wanted. And for that we get to listen to the Ruling Class whine and moan and act all theatrical about what a terrible panic will ensue because they can't overspend as much as they want.
    What a load of bullshit.
    And what a load of idiots we are when we let them get away with it. Any program manager who cuts anything critical instead of his own paycheck should be fired immediatly without recourse. And any politician who plays the false panic card during the next few months should get a nice present come next primary season - a challenger who won't sit and take all the bullshit that'll get thrown around.

  24. On the positive side by gatkinso · · Score: 1

    Folks aren't out rioting in the streets over these cuts like they did in Athens, Madrid, London, Paris....

    --
    I am very small, utmostly microscopic.
    1. Re:On the positive side by jandrese · · Score: 1

      The cuts haven't happened yet.

      --

      I read the internet for the articles.
  25. coward by Anonymous Coward · · Score: 0

    I'm sure the TSA wont be affected -- think of the children!

  26. still spending 2 1/2 times more than Clinton by raymorris · · Score: 2

    And, even with sequestration, Washington would still be spending over TWICE as much as they did during the Clinton administration. Sequestration is means "cutting" about 4% from the planned budget. (While still spending more than last year.)

    It's widely believed that Clinton-style budgets were good. If you believe that, you should ask for sequestration times fifteen, cutting the projected budget by 60% to get back to Clinton-like spending.

  27. Can't cut $41B out of a $3.5T budget? by schwit1 · · Score: 1

    If the elected officials can't do this then they should resign.

    Rightfully killing the F35 would fix all the DODs obligations. Raising the retirement age would fix other budget issues.

  28. PREDICTION by Anonymous Coward · · Score: 0

    For those of you who are "awake".

    We can't do anything about the economic collapse; we know that will happen no matter what. But we also know the New World Order is attempting to make it happen a little earlier, so they have some control and can maximize their wealth from the people.

    Those of us that are awake, have been working hard to prevent a world war, and to prevent a civil war, and at this point, many believe only one of them can be avoided. Either way, if we have had a good push with our efforts, then Congress will push back the sequester several months, and if we have not done a very good job, then it will hit and activate.

    If you follow the mainstream media, it would indicate that gun control will not pass because us pro-gun people have "too much power". All indications are it is going to pass. It will be illegal, but it will pass.

  29. Cry me a river by Vrtigo1 · · Score: 0

    The article (and libs in general) like to point out all the scary stuff that will lose funding in the hope that they can scare the public. What they don't tell you is that the liberals in congress have rejected virtually all of the proposals to cut spending from anywhere. Even if we're just talking about limiting the growth of programs - i.e. keep spending at the current level instead of increasing it, they start going batshit crazy.

    It's time to face reality - spending more than you bring in isn't sustainable. No matter how you skin that cat, it just isn't going to work. That's why we've got a 16 TRILLION plus dollar deficit.

    The liberal's answer to this is to raise taxes on the rich. I don't fall into that category, but I can tell you if I did, I wouldn't be too happy about paying a larger share of taxes on my income to pull the weight of everyone else. There are a great many folks in America that basically pay no federal income tax because they are low income. So what Obama and the liberals in congress are really saying is it's ok not to go to college and get a decent job because they won't tax you if you can't afford to be taxed, or if you have kids even though you can't afford to take care of them. They've basically removed a reason for people to aspire to educate themselves and get a good job, because if you're poor they're not going to tax you, and if you do get a good job, say you start a company and grow it, they've removed the inventive for you to make more money because they're just going to take more money away from you as you bring more money in.

    1. Re:Cry me a river by tekrat · · Score: 1

      Right, because living on the dole is sooooooo much better than becoming wealthy. I should stop working right now, give up my car, live in a crime ridden neighborhood, have no access to healthcare, eat crap food, and barely survive, just to NOT be taxed. You've convinced me!

      Look, idiot, first of all, the wealthy currently pay LESS taxes than the middle class. I'm really, really, really FREAKING tired of hearing rich bastards complain that that their taxes are going to go up and that somehow raising your taxes by 3% is the end of the world as we know it, and you're now paying more than people who earn below the poverty level. Boo freaking hoo. If most of your income is from investments, you're paying 15% federal income tax while I'm probably paying close to 35%.

      Secondly the entire tax code is geared to benefit the wealthy. There's a zillion Tax Shelters, loopholes, and other flotsam that makes your taxes lower than most if you're in the $million+ club. And if you have a good accountant (and if you're rich you surely do), he can work a little magic that makes your taxes even lower!

      Back during the Eishenhower administration, the wealthy were taxed at 90% -- and he was a Republican! So, get your panties out of a knot, man up, and pay your damn taxes. It's not just the right thing to do, it's the price you pay for civilization. I mean, unless you're looking forward to a French Revolution kind of future.

      --
      If telephones are outlawed, then only outlaws will have telephones.
    2. Re:Cry me a river by Anonymous Coward · · Score: 0

      real money is real money dork:
      Top 1% wage earners ($380k+) paid 38.02% of the federal income taxes in 2010
      Top 5% wage earners ($160k+) paid 58.72% of the federal income taxes in 2010
      Top 10% wage earners ($114k+) paid 70.00% of the federal income taxes in 2010
      Top 25% wage earners ($67k+) paid 86.34% of the federal income taxes in 2010
      Top 50% wage earners ($33k+) paid 97% of the federal income taxes in 2010
      Bottom 50% wage earners ($33k-) paid 2.6% of the federal income taxes in 2010

    3. Re:Cry me a river by Anonymous Coward · · Score: 0

      Ah, i'm sorry but I need to make some clarifications to your statement.

      The MARGINAL taxrate above 400k was 90%. The effective taxrate was nowhere near 90%.

      And the PERCENTAGE paid on taxes may be less for more wealthy people due to deductions and how they gain their income. The actual net paid in taxes is greater due to their income bracket vs yours. Additionally, you could, at the same overall income that you hold now, also have the same 15% tax rate should your income come from investments, which you're accusing wealthy people of gaming the system with.

      I'll soapbox though now: I am in the 25% tax bracket range and I invest my earnings significantly and am taxed on my gains at 15%. Wait.. how did I make those investments originally? Yes... I worked and paid my 25% already! And yet I go out and risk my own money in investing (which isn't cost or risk shared by the government), and i'm taxed again on those gains. IMO capital gains shouldn't be taxed if the initial investment was through income that's already been taxed.

    4. Re:Cry me a river by tekrat · · Score: 1

      "IMO capital gains shouldn't be taxed if the initial investment was through income that's already been taxed."

      So true. And when I go out an buy a car, why should I pay tax on any purchase? After all, the money that I'm using to buy the car was ALREADY TAXED... So, technically, there shouldn't be tax on ANYTHING after that money was taxed, right?

      Why is there tax on my phone bill? Or when I go to the grocery store? Or fly to some destination for vacation? Or buy gas?

      --
      If telephones are outlawed, then only outlaws will have telephones.
    5. Re:Cry me a river by Anonymous Coward · · Score: 0

      Take a look at the data that is available about how much the different 20% sections of tax payers are contributing. The rich are paying a hell of a lot more than the middle class. They aren't paying 15% federal income tax. You're confusing that with the capital gains tax, which is how most of these blowhards like Warren Buffet say that they are paying less than their employees. Of course, he could change how those investments pay out in order to be treated like regular income, but that's not the point. He wants to look good to the press and those clamoring for higher income taxes on the rich, which he will never pay because he's structured everything to be capital gains. If the stock market goes down and those investments lose value, he won't be making that money, but the risk involved is why capital gains is taxed at a much lower rate.

      Also, comparing the current tax rates to what was present during the Eisenhower administration is laughable. It was rare to have anyone pay those rates. There were even more tax shelters and deductions available at that time. The tax code changes in the 1980s and beyond did away with most of that in exchange for lower rates.

      BTW, if you are living on the dole, you do have access to free healthcare and a variety of other programs. In fact, depending on the state, one has to earn $60K to have more spending power than someone on the dole with a part time job. I have relatives who work for social service agencies and often their "clients" have better cars than they do. So don't worry, you will be able to keep your car. Whether or not that you eat crap food is up to what you pick out at the grocery store. EBT cards don't mandate crappy food.

    6. Re:Cry me a river by Anonymous Coward · · Score: 0

      Hey dumbass, that 15% is on money that was already taxed. That 15% is the federal government double-dipping.

      And yes, the tax rate used to be 90%, but nobody paid that. Back in those days you could write off anything and everything.

      You wanna talk about a revolution? Guess what happens when the fed places the final straw on the camels back, and the currency completely crashes? Cuz it's coming. Be prepared.

    7. Re:Cry me a river by Vrtigo1 · · Score: 1

      If most of your income is from investments, you're paying 15% federal income tax while I'm probably paying close to 35%

      First...if you're paying a 35% tax rate, then you're bringing in close to $400k and are not what I would consider a good representative sample of the "middle class", so I think your response is kind of unbalanced there. I would consider middle class averages to be someone making $40-50k or a family making $100k, which puts them at a 15-25% tax rate.

      Second, capital gains were taxed at 15% and are now taxed at 20%, but you throw that out there like it's some kind of insult that folks are taxed at that rate. There's nothing stopping EVERY SINGLE PERSON IN THE USA from using the exact same capital gains tax, it's just that most people don't earn the majority of their income from investments. So let's back up and take a look at what makes up a huge portion of our economy...investors. Do we really want to disincentivize investing and hurt the economy by raising effective tax rates? If you take away the investor's incentive, then maybe he'll just go somewhere else and take all of those jobs he creates with him.

      At the end of the day, you can argue both ways, and both views can make valid points, but MY point is that we've empowered people to be lazy. If you can get food stamps, free healthcare, free cell phones, subsidized housing, etc, etc then if you're one of those people that's going to get a job making $30k, then WHY NOT just sit on your butt instead and take the free handout? It's people like this that consume resources while contributing nothing that I have a problem with. They're the reason liberals advocate higher taxes on the rich. It's specifically because under the current tax code, with all these folks not paying any taxes at all, it's an unsustainable system. And the other problem I have is that while they see that there's a deficit, their solution is to raise taxes on a specific group of people to benefit another group of people. That's redistribution and I don't like it. It makes it OK for person A to contribute nothing and while person B has to contribute more than everyone else.

      But I mean, it's cool and all if you just want to call me an idiot. I guess that works too.

  30. War is part of Obama's Baseline by Anonymous Coward · · Score: 0

    Because war really is part of Obama's baseline. This, in itself, should scare the shit out of you.

  31. How about we tax payers... by 3seas · · Score: 1

    Each and everyone of us telling our employees how they are to use our taxes!?
    They are responsible to infoprming us taxpayers what they need funding for and we each decide where our taxes are used. This means genuine government transparancy.

    This will solve government failure in budgeting and accounting, as the people will be setting the budget and the tax processors can allocate as each of us say, for accounting purposes.

    The constraint of where we the people can say to use our taxes is that it must be for the generation of team work benefits we the people can share in, unl;ike the full benefits now claimed by the politicians who think "we the people" is just them.

    This also helps deal with lying politicians who say what they will to get our vote but then flip flop while somehow claiming they represent us still.
    We the people are the paying boss.

    Look up the history of when taxes begain and understand the Declaration of Independence clairity of our rights and duty to put off bad government and replace it with what will do what the founders intended, look after our future security and this means more than warfarem but financial etc...

    The eaisest transition to do this is we the people say where our taxes are to be used. There is nothing in law that violates our constitutional rights and duty for use to have the genuine right to do this.

    For if you do not siupport this honesty, then you are one to support rigged elections, You either trust the people, or you don't. And if you don't then I suggest the next time you go to the store, just give teh cashier your money and let them decide what you get in return... for is not that the way things are going with your taxes?

  32. The real figure is now $44B by Lawrence_Bird · · Score: 2

    per the most recent CBO estimates. The total budget is $4T. Anybody who is crying tears over any part of the federal government losing a whopping 1% of its budget really needs to re-examine where they are coming from. How many individuals and families deal with far larger swings in income on a weekly basis? How many people have had to abruptly make swift changes to their personal outlays because they or another family member has lost a job? Become ill?

    Worse still, are these even real cuts? Or are they just slowing the rate of increase in the growth of spending?

  33. Like unemployment has no effect by Anonymous Coward · · Score: 0

    Yeah, it's really weird that government has to spend more money in times of high unemployment. Somehow the words "unemployment benefits" come to mind. That's of course one of the reasons why government should rather spend money in ways that put these people back to work (aka stimulus, which republicans hate, or the American Jobs Act, which republicans blocked last year) -- because it would actually save the government money. Now I know, this is slashdot, some of you prefer to live in a world where those unemployed moochers receive no support from the government, but luckily people who share those beliefs are still the minority.

  34. Set Dividend and Capital Gains Tax Back to Normal by Anonymous Coward · · Score: 1

    Historically normal levels of tax on both dividends and capital gains will increase revenues enough to help us avoid:

    * raising the age to qualify for social security
    * slashing medicare

    And making the "Double Irish" and "Dutch Sandwich" tax evasion schemes illegal would also be a better alternative than dealing with a manufactured crisis to take away the benefits our parents enjoyed. We want an America that is at least as good as what our parents enjoyed.

    Of course, eliminating government waste and cutting spending responsibly is absolutely essential.

    And penalties for large banks that commit fraud and money laundering for drug dealers, etc. should at least be MORE than the profits generated by the illegal activities.

    If High Frequency Trading isn't going to be made illegal, then at least a small fee on each transaction would help fund FDIC, reduce the deficit, etc.

    Surely this is better than screwing us out of timely Social Security benefits we ALREADY EARNED AND PAID INTO!

    Greatest generation my ass. They should be called the Most Selfish Generation because they are screwing over future generations for short-term personal gains or out of willful ignorance. What a sham.

    Wake up. This so-called crisis isn't real. It is manufactured to make us afraid and extort us into giving up our hard earned benefits.

  35. lesson to be learned by froth-bite · · Score: 1

    inflationary spending by numbers is like slashdot following reader response to political stories (like this one) that increase the number of increasingly shrill comments, but lead the direction of the stories away from the science, the insightful analysis of readers in the forefront of technical knowledge, the prime direction of this forum. If you only look at numbers, your posters will increase up to the point where the focus and direction is completely lost.

    --
    In NSA America social networks join you!
  36. Idiots by rabtech · · Score: 1

    The vast majority of the federal budget is mandatory, necessary maintenance/upkeep, earned benefits people paid for years of their lives for, or temporary benefits.

    The amount of the budget that funds everything else, stuff like NASA, scientific research, etc makes up a relatively tiny slice of the budget.

    So yes, 85 billion isn't huge compared to the overall total but when you subtract out Medicare, Social Security, etc it ends up being a bigger chunk than it first appears.

    Besides which, to find total government employment you have to include state and local governments. Total government employment has dropped significantly over the past few years. If the government had held steady we'd have 6% unemployment (or lower) right now. If households, the private sector, and government cut at the same time it's called a depression.

    Oh and anyone comparing the government to a family budget is a complete and utter moron. Families don't pay bills and receive income in a currency the family prints in their basement; by definition the federal government can coin or print as much money as they want, including without borrowing if it so chooses (the Fed credits the government account with cash ex nilhilio when the US Mint makes coins). Granted, if you do too much of that interest rates will rise... And if the economy were closer to 100% utilization it would distort the market. But we aren't and interest rates are still at historic lows; banks, corporations, and the richest of the rich are hoarding cash in massive amounts.

    We should have automatic stabilizers that kick in and out without requiring Congress' approval. In recessions, government spending kicks up to cover the gap. In boom times spending cuts back and the debt is repaid.

    --
    Natural != (nontoxic || beneficial)
  37. Shell game... but with multiple dealers by bussdriver · · Score: 1

    All the parties involved play games with the budget with different motives and incentives.

    It would be nice if things could be handled in an open way the public could understand (is that possible anymore, most Americans can't do math?) But the reality is that the politicians benefit from the complexity involved and the confusion they create - if the public finally did their job, then the politicians would step up the complexity (unless voted out of office...)

    I'm not worried about a national debt at WW2 levels I'm worried that we didn't have anything near WW2 to justify running it up. It signifies the dysfunctional electorate and is merely a symptom of the classic despotic disease - the one which always ends fatally.

    I'm glad the cuts are coming because the important things will be forced and hopefully they won't get as many compromise pork as if they prevented it from happening in 1 mega bill. Even though it may only be for a short period, this may be the biggest military pork CUT we will see until the collapse of the republic.

    Politicians in modern times; having such a dysfunctional system, must force impossible situations in order to make the necessary deals happen. Reasoned timely debate is no longer possible; lobbyists have less influence during such deadline crises (unless they helped create them and prepared.) No matter what, there are always bad parts put in with the good parts so thinking a mock crisis changes that is foolish. What it does seem to do is force problems into big massive compromises where maybe there are more bad deals. I would think this is the case since they love to push things back into shared deadlines and combine issues into big bills; however, it could simply be they need to raise the stakes high enough to force it to get done when enough politicians suffer.

  38. Less inspections by USDA? by Anonymous Coward · · Score: 0

    Seriously? With record meat and veggie recalls the past ten years the only things being inspected are porn sites by employees. Waste of tax payer money. Accountability and open records will be the fastest way to ensure quality service at a lower cost to tax payer.

  39. baseline by Anonymous Coward · · Score: 0

    the automatic across-the-board strike spending cuts /strike
    the automatic across-the-board decreases in the amount of increased spending

    FIFY - welcome to baseline budgeting

  40. Confusing different interest rates by DragonWriter · · Score: 1

    Wrong. The interest rates are low to stimulate the economy.

    The Federal funds rates (which has knock-on effects on various lending and account interest rates) is low for that reason.

    The low effective interest rate on US treasury securities (which includes the discount rate on T-bills, which technically aren't interest but amount to the same thing), which is what is relevant to the US governments ability to raise money, is because US treasury securities are widely seen as a very secure investment, and investors demand a low risk premium.

  41. Bad Analogy FTL by DragonWriter · · Score: 1

    Let’s now remove 8 zeros and pretend it’s a household budget

    Are households sovereigns whose income is set largely by the family's choice of how much to tax?

    If not, does it make sense to pretend that the budget of the government of a soverign nation-state differs only in scale from that of a household?

  42. Shock Doctrine by Un+pobre+guey · · Score: 1

    The "sequestration" cuts are $85B out of $3.6T, or ~2.4 %. This has motivated politicians from both parties, and loud-mouthed political actors of all stripes, to make wild claims about terrible consequences if the cuts were to be made. The implicit claim is that cutting 2.4% across the board would result in an "unready, hollow force", 9% unemployment, and all sorts of other horrific things (which I'm sure you've heard of by now).

    Is it even true? From cutting a measly 2.4% of future spending? Or is it yet another shock doctrine exercise to distract us from other things we should be paying attention to instead? There's a book, BTW.

    • How did we get de-industrialized over the past 40 years? Was there an upside for someone, and if so, who?
    • Why does petroleum cost over $100/bbl when there is no shortage, demand has been decreasing since 2008, and it costs a small fraction of that to produce?
    • Who supports "Al Qaeda"? (Hint)
    • Why is wealth distribution becoming more and more polarized?
    • Do wealthy companies, individuals, and organizations control the world's governments through (surprisingly affordable) "lobbying"?
    • What will you retire on?
    • How will climate change affect you over your lifetime?
    • Where will your potable water come from 20 years from now?
    • Why do we continue to eat such a massively unhealthy diet? What fraction of "out of control" medical care costs are directly attributable to that?
    • Will your job or a job like it still exist in 2025? What will you be doing then?
    • Why did we invade Iraq? Why are we still in Afghanistan? Why are we rattling our sabers at Iran if our "allies" in the middle east are by far the greatest financiers of terrorism?

    etc.

  43. Tax rates unrelated to tax revenues? by DragonWriter · · Score: 1

    Rates yes, revenue no. Every time the president states that revenue must be part of the deal, he is clouding the issue. The government is certainly able to legislate tax rates, but has no control over tax revenue.

    The only way this can not be completely self-contradictory is if you assume that tax rates have no effect whatsoever on revenue. This is, to say the least, and extraordinary claim for which some evidence should be provided, and...

    Smart tax policy will increase revenue if it can be supported. Stupid tax policy will lead to lower revenue.

    ...there is no way that this pair of sentences is consistent with "The government [...] has no control over tax revenue." If there are polciies that will increase revenue and policies that will reduce revenue, and government has the power to choose between policy courses, then government has control over tax revenue.

    1. Re:Tax rates unrelated to tax revenues? by Bartles · · Score: 1

      My point is that tax rates and tax revenue are not directly coupled. The government sets tax rates and with the tax code, and then people adjust accordingly in response. There are certainly instances in which an increase in tax rates will result in a decrease in revenue and vice versa. If you would like an example, here is an article on property taxes in Detroit: http://www.detroitnews.com/article/20130221/METRO01/302210375

  44. Re:Set Dividend and Capital Gains Tax Back to Norm by ChrisMaple · · Score: 1

    Historically normal levels of tax on both dividends and capital gains will increase revenues enough...

    I agree completely. We should return to the historically normal levels of tax on both dividends and capital gains in effect for hundreds of years before 1900.

    --
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  45. fragile system by Anonymous Coward · · Score: 0

    i actually think the sequester is good for government and good for people. after reading nicholas taleb's book "anti-fragility" i think a dose of pain inflicted on these agencies is beneficial. its going to force crisper decision making, better prioritizaton and albeit painful i am convinced it is healthy pain. think of this as a bit of toning of the federal body. it will give some muscle ache but in the end it will stenghten it.

    i think the managers and agency directors will make really smart decisions unless they somehow convince themselves that this is temporary. make it permanent and move on so we can see how smart the leaders of each agency is, and then afterwards put back in some budget based on where over achievments are possible from held back funds. but friggin A learn to balance spendinging vs. available sources of income.

  46. Neigh problem! by RockDoctor · · Score: 1

    expect fewer inspections to the food supply

    Coming soon to the corners of the Internet occupied by Americans, a whole wave of recycled horse-burger jokes fresh from their successful appearances in the European corners of the Internet.

    In the words of Phineas Freekowtski, "Hubba bubba!"

    --
    Birds are not dinosaur descendants;birds are dinosaurs, for all useful meanings of "birds", "are" and "dinosaurs"