[casinva]

I’m still trying to learn more about this myself, and your question about how it impacts Social Security led me to this:

http://cookaerospace.newsvine.com/_news/2011/07/28/7187495-the-mackpenny-plan-for-balancing-the-budget-in-a-decade-the-best

[Gvl_M3]

Thanks for the link.

[Oatka]

A point that should be hammered into the naysayers: The good news for the Obama White House is that the executive branch can elect to decrease one department by 9% so that it can raise another department by 8% if it wants. The one per cent cut is not a flat rate for every department, but the total federal budget must go down one per cent.

This could be a problem IF obamacare isn't repealed: One major problem looming for Mack/penny will be Social Security and Medicaire. Because of the aging population social security costs can't be easily contained and because of Obamacare we are essentially putting 30 million new people into a quasi private-public insurance wonderland. Probably the only way for Mack/penny to accommodate those challenges will be means testing. The one penny per dollar rubric could be maintained by only applying that reduction rate to the richest 10% of pensioners.