To all those who believe that the federal government has cut back in these tough economic times…it is simply just a myth. In reality, the federal government has increased spending by five percent this year.
When Republicans took control of the House in January, they pledged to make deep cuts in federal spending, and in April they succeeded in getting a bill advertised as cutting $38 billion from fiscal 2011’s budget. Then in August, they pushed for a deal to cut another $2.4 trillion over the next decade.
Some analysts have blamed these spending cuts for this year’s economic slowdown.
But data released by the Treasury Department on Friday show that, so far, there hasn’t been any spending cuts at all.
In fact, in the first nine months of this year, federal spending was $120 billion higher than in the same period in 2010, the data shows. That’s an increase of almost five percent. And deficits during this time were $23.5 billion higher.
These spending hikes haven’t stopped many analysts from claiming that the country is in an age of budget austerity, one that’s hurting economic growth.
The Washington money machine that is operated by Congress continues to run as normal.