10 Sobering Facts About the National Debt
7. Baseline Spending Increases
Baseline budgeting is a Washington term that means projected spending increases are included into the budget every year at around 7% in order to cover inflation. This automatic 7% increase has been happening since 1974. Politicians love to make marginal cuts in future spending and claim they are cutting government, even though spending will increase. Bill Clinton claimed he created a surplus simply because spending fell short of the 7% increase during his tenure. Baseline budgeting is one way politicians are deceitful when it comes to spending and cuts.
