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Part of that spending will be offset by canceling new programs, while some will have to be made up with cuts elsewhere in the budget as talks continue.
Indeed, these effects are likely to be larger than expected compared with conventional multiplier estimates, which rest on two assumptions: the economy is close to full employment; and the contraction in demand caused by a cut in government spending will be offset by a drop in interest rates.
Thus, in February lawmakers passed pay-as-you-go legislation, decreeing that new mandatory spending will be offset by spending cuts or tax hikes.
"It's both embarrassing and disingenuous for an organization such as CAP to say a higher minimum wage would 'cut taxpayer costs' -- knowing full well that those reductions in spending will be offset by other increases in spending, according to the CBO," said Michael Saltsman, the group's research director.
Similar(56)
Any extra cash you may spend will be offset by what you save in checked bag fees and overall inconvenience.
The boost to consumer spending power will be offset by the fact that Brent crude at $43£2828) a barrel makes US shale production uneconomic.
It's not all bad, though - if you become a scientologist, the money you'll spend on being audited will be offset by the positivity of your thetan being cleared, and dianetics will enable you to one day reach the Bridge to Total Freedom.
I hope Congress will devise a plan to directly help Sandy victims that will be offset with spending reductions and be free of wasteful pork-barrel spending.
He said that George Osborne does not really have any money to give away, and that if there are tax cuts, they will be offset by spending cuts or tax rises elsewhere.
The money the school spends on financial aid, she said, will be offset by the money it saves by making the transition from wired to wireless buildings on campus.
That gain will be offset by marketing spending expected in the rest of the year, the company said.
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