The liberal freakout over anti-Keynesian spending cuts
According to the Congressional Budget Office (CBO) score of the legislation, the debt limit deal will cut $25 billion in 2012 and $47 billion in 2013. $25 billion may sound like a lot, but the federal government spends almost $300 billion a month and will spend $3.7 trillion in 2012. $25 billion also amounts to less than .7 percent of all government spending and less than .2 percent of GDP.
Hard-core Keynsian Suzy Khimm claims that a 1 percent of GDP cut to government spending reduced GDP by .5 percent in two years. So at .2 percent of GDP, by Keynsians own numbers, the debt limit deal will lower GDP by .1 percent. That is a rounding error at best.