Tuesday, August 10, 2010

Bought off, but NOT paid for

So another $26 billion goes out the door for teachers and police and fireman. But don't worry people, because it's all paid for and won't add to the deficit.

But, our government has an interesting way of paying for things. The spending happens ASAP, if not sooner.

The paying part? Oh yeah, we will let the increased level of food stamp payments from the stimulus bill expire in 2014. That's supposed to be almost half of the $26 billion "payment".

It's not really a cut, just a reversion to pre-stimulus levels. And of course the exchange isn't contemporaneous so Oliver Williamson applies with a vengeance.

Congress calls this "real spending cuts".

I call it BS.