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Wed Dec 12, 2012, 12:38 AM

A reduction in the rate of spending is NOT a spending cut!

So goes the argument, anyway. And it's wrong, in terms of the effect it has.

Let's say you're feeding four people at a cost of $10 per day for each person. You're spending $40 per day.

Add a fifth mouth to feed.

Now add $5 to your total spending.

Now you're spending $45 per day. That's an increase!

Oh, but now instead of spending $10 per day per person, you're spending $9 per person.

Guess what? To each person, that's a cut.

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