Insensitive to Scope

Jeez-Louise. I’ve seen a bunch of stories about Obama sitting his cabinet down and telling them that they’ve got to take a “hard look” at their agencies’ budgets and come with $100 million in budget cuts. Really? Is he being serious? I mean, I’m really bad at math but even before I read this post I knew that $100 million out of $ 3 trillion is insignificant. Here are the significant illuminating numbers quoted in the post (emphasis added):

Today, President Obama called for $100 million in budget cuts. Out of a $4 trillion in spending this year, this is the rounding error of a rounding error:

It is 1/40,000 of the federal budget;

It is 1/7,830 the size of the recent “stimulus” bill;

It would close 1/1,845 of this year’s budget deficit;

It is the amount the federal government spends every 13 minutes; and

For a family earning $40,000 annually, it is the equivalent of cutting $1 from their family budget.

The linked post also mentions that this is being done to make Obama seem like he cares about cutting government spending. And that he’s been talking to “behavioral economists” who say that when it comes to large numbers like this, people generally are “insensitive to scope”. Which means that most of us are just too stupid to do the math and realize that Obama’s budget cuts are infinitesimal in relation to the bloated Federal budget.

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One thought on “Insensitive to Scope

  1. Hey, finally, something worth talking about and what I have been saying all along. We seemed to have jumped a magnitude and not any of the darling news medias are telling the real story and just how bad this will be when all those trillions are spent. like Maydoff once it’s gone we will get back cents on the billions of dollars. This unfortunately goes all the way back to Bush and the bail outs given before the ‘first’ bailout. Obama is just adding to the already horundeous debt with even more stimulus and bail out mumbo jumbo.

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