The so called congressional supercommittee is charged with coming up with $1.2 trillion in cuts by 23-Nov. If they fail to reach agreement AND Congress (both houses) doesn’t adopt their proposal by the end of the year, automatic cuts of $1.2 trillion are triggered. These cuts would begin in FY 2013 (Oct 2012) and would be phased in over 10 years.
Many are predicting doom should Congress fail to meets its deadlines, but let’s calm down. These cuts are hardly draconian. The chart below shows two figures: the large bar represents the total budget outlays in FY 2011, and the other bar would be the cuts.
Question: Would we even notice?