TrimTabs' Charles Biderman finds fault with the government's sequestration and makes a bold comparison of the US Government to the Roman Empire.
By Charles Biderman
This government sequestration BS is driving me nuts. I can no longer watch the TV talking heads describing how horrible sequestration will be. The talking heads are saying that if sequestration happens, airports will close, aircraft carriers won’t sail, national parks will close and hundreds of thousands of jobs will be lost.
Yet, the TV talking heads who are predicting doom apparently haven’t bothered to do the math. If they did, they would discover that an $85 billion cut in government spending is only 2.4 % of the entire $3.75 trillion federal budget. OK. Back out $2.3 trillion, 62% for entitlements but $85 billion as a % of non entitlement spending is still a relatively modest 6%. So will a 6% drop in non entitlement government spending destroy the economy? They cannot be serious to even consider this.
Parenthetically, total income tax collections this year will be $2.6 trillion, meaning that the budget deficit is a modest $1.1 trillion.
What is apparent to me is that our government is becoming very good at the big lie. Our government will never say that $85 billion is only 6% of non-entitlement spending. Rather by comparing apples to oranges they are trying to say sequestration is more then 15% of spending. And to increase the fear factor, our government now uses 10-year numbers. Therefore, to scare people silly, sequestration is not $85 billion but a much more ominous $850 billion. Isn’t $850 billion much scarier than $85 billion? ...