Paul Ryan will release his budget today, and he has a companion Wall Street Journal op-ed and a shiny YouTube video to go along with it. Ryan says his budget will cut $6.2 trillion over the next decade, but if it’s anything like the other numbers in his plan, that’s a made-up figure. He draws a line straight upward to model the status quo of spending and debt, without anything attached to it. He assumes that stimulus spending will continue for the next 35 years despite no actual legislation calling for it. And there’s this out-of-nowhere stat:
A study just released by the Heritage Center for Data Analysis projects that The Path to Prosperity will help create nearly one million new private-sector jobs next year, bring the unemployment rate down to 4% by 2015, and result in 2.5 million additional private-sector jobs in the last year of the decade. It spurs economic growth, with $1.5 trillion in additional real GDP over the decade. According to Heritage’s analysis, it would result in $1.1 trillion in higher wages and an average of $1,000 in additional family income each year.
No numbers are given to back this up, presumably because they don’t exist. I’d take any plan that cuts the unemployment rate by more than half in four years, but absolutely no economic proposal believes that can happen. And certainly not one with as much magical thinking as the Ryan budget.
But the biggest lie here is that this budget would somehow protect Medicare and Medicaid. It won’t. It will eliminate Medicare and whittle down Medicaid to the point of uselessness.
But while saving large sums for the federal government, the proposals on Medicaid and Medicare could shift some costs to beneficiaries and to the states.
Under the proposal, Medicaid would be transformed into a block grant, with a lump sum of federal money given to the states to care for low-income people. States would be given more discretion over use of the money than they have under the current federal-state partnership.
For future Medicare beneficiaries — people now under 55 — Mr. Ryan’s proposal calls for the federal government to contribute a specified amount of money toward the premium for private health coverage. Under the traditional Medicare program, the government reimburses doctors and hospitals directly.
That’s a pretty succinct explanation of what the Ryan plan does. It takes a single-payer Medicare program and privatizes it, when every study in the world has shown that Medicare is cheaper. And the increased costs and more all get pushed onto the individual senior citizen. You get a voucher to buy private health insurance, which as a 65 year-old will be extremely costly. The voucher doesn’t cover the insurance? Tough, be a smart shopper. And the voucher reduces in real value over time, only increasing by GDP+1 annually, less than half of the actual increase in health care costs.
As for Medicaid, block granting will mean that Medicaid funding won’t increase in times of economic stress when there are more poor people seeking help. Medicaid is already so cheap that a lot of doctors won’t take it. This is a blueprint for stopping people from using it; there’s no other way to deal with the cuts. And this idea of “state experimentation” has already been tried.
To get around some of this, Ryan’s op-ed talks about state flexibility, with the implication being that states have some secret Medicaid policies they’ve been dying to try but that the federal government simply hasn’t let them attempt. But the truth is there’s been a tremendous amount of experimentation in Medicaid over recent decades. Indiana converted its Medicaid program into health savings accounts. Tennessee based its program around managed care. Massachusetts folded its Medicaid money into Mitt Romney’s health-care reforms. Oregon tried to rank treatments by value. Some of these reforms have worked well and some haven’t worked at all, but none have solved the basic problem that covering the sick and disabled costs money, and you can’t get around that by trying to redesign their insurance packages. For that reason, block-granting Medicaid ultimately means cutting health-care coverage to the poor, the elderly and the disabled, even as it doesn’t actually address the factors driving costs throughout the health-care system.
The last point is key: there’s no actual reform attached to these plans, which would actually lower US health care costs. The idea is to take government off the hook for those costs, and nothing more. People will have to make up the difference. All Ryan does is shift public debt to private debt.
And that’s before even getting to the fact that the Ryan plan cuts taxes to 25% for the top individual and corporate rate. Throwing people off Medicaid and privatizing Medicare pays for huge tax cuts for the rich.
For providing all this, the official commentariat labels Paul Ryan the most serious, courageous, manly man that has ever strode across Washington. He’s a gutsy fighter, bravely taking on the poor, elderly and infirm on behalf of the downtrodden rich, who have had it too bad for too long. As Kevin Drum says, “A plan dedicated almost entirely to slashing social spending in a country that’s already the stingiest spender in the developed world, while simultaneously cutting taxes on the rich in a country with the lowest tax rates in the developed world — well, what could be more serious than that?”
As Dean Baker notes, if our health care spending were commensurate with the comprehensive health care spending in Germany, Britain or anywhere else in the developed world, we would have no budget problem; in fact, we’d have a surplus. I don’t suspect that to be part of the budget alternative that Democrats will introduce to counter Ryan, but it would be nice if it got mentioned every once in a while. Ryan actually correctly tackles the drivers of the deficit – health care spending. He does so by systematically reducing and eliminating American’s health care. If Republicans want to make that their 2012 platform, so be it.




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Theater. In the end it’s probably going to come down to Ryan’s Plan vs The Catfood Commission. Guess who will win without a doubt- it’s already pre-determinded.
Someone please remind me why Heritage still has tax-exempt status.
a government sector surplus would be a budget problem. the problem with our current federal gov deficit is that it is too small!
Seven Deadly Frauds of Economic Policy
The Perfect Fiscal Storm: Causes, Consequences, Solutions
Good point. If the Dem compromise is something approaching the Catfood recs this will be a disaster.
I can see the dems supporting the abolition of medicare where some of the elderly get vouchers, the conservatives calling it all socialism, followed by rank and file dems parroting “don’t let perfect be the enemy of the good”.
Paul Ryan is the corporate media’s new “darling.” They’ll make sure his anti-social proposal is seen as “conventional wisdom.”
So Ryan’s plan for fixing the budget is analogous to curing a disease by killing the patient?
Well, I’m sure Obama’s plan will be slightly less shitty by comparison.
So I guess I’ll have to support Obama and work hard to make sure he wins in 2012, then.
NOT.
The corporate media dance on the same strings as Obama and Ryan, no?
Paul Ryan decoded: “Virtual Pigs Eat Dirty Cash” (Apr. 5, 2011)
A word from The Juice Media: “History is Happening (Mar. 24, 2011)
This one (along with protecting SocSec) is THE “Man the barricades!” issue this year for me.
No. Way. In. Hell.
“Most conservatives are wildly stupid.”
That’s hard to swallow, that out problem is the deficit is too small.
Isn’t it possible the deficit is large enough, but not going to the right people/purposes??
It feels to me like if we had a real stimulus with real direct spending and real jobs created, that we could likely do that correctly without having our deficit any larger than it is now.
Is that way off the mark?? Maybe put another way, IMO it’s governement spending that’s not big enough, not the deficit. We could increase government spending to levels that would be a real stimulus and still maintain current levels of the deficit by taxing the wealth a lot more.
Ryan’s plan is too pro-industry even for Max Baucus.
Which is sorta like being too pro-torture even for Dick Cheney.
There is a strong need to show graphics/visuals and compose a counter plan.
I loved Keith’s reply to that Republican students question…
Ryan is on the right track. There are too many non-rich Americans, and this policy will help reduce that problem. The big corporations really don’t need Americans at all, and if the population of the US were reduced by 70-80%, then the richest several per cent could be supported by enough serfs to keep them comfortable, and no surplus of poor to cost them tax dollars. Ryan is earning his keep.
Oh goodie … Cornell University College Republicans on The History of the Republican Party. { LOL }
If you’re not willing to let the Bush tax cuts expire, then you have just disqualified yourself from any serious discussion about the deficit. Same goes for corporate subsidies, tax credits for taking jobs offshore, mortgage interest write-offs for vacation homes, etc.
Someone’s gotta say it sometimes.
Why are the lefty blogs pointing out there are no numbers to back this up? Why aren’t the Dems acting like an opposition party and pointing this out?
If the MainStream Media is really objective, fair and balanced then how come our ideas to balance the budget never get on tv?
End the wars, cut defense spending tax the rich everything BT said last thread why can’t we get heard.
The majority of voters back us up but our ideas can’t get heard on tv or Washington:(
Japan has an alternative solution…
Very true, it just not said enough and of course the “Media” would try and spin it.
So batshit crazy Ryan says he’ll save 6.2 trillion over 10 years. For you right wing folks that have a hard time at arithmetic, that’s 620 billion a year. The deficit is running about 1.3 trillion a year. Hey, Ryan how are you going to solve the remaining 680 billion a year. I suppose it’s time for the lower taxes generates more revenue gambit coming down the road at us. Ya know because that “lower tax” racket has done so well the past 30 years.
FOK News has it…
This story, thank you, needs a new headline:
–Destruction of Social Security, Part 1.
–Frontal attack on senior citizens.
–Republicans hate senior citizens who rely on social security to live.
–The deficit must be paid off by euthanizing seniors while giving savings to off-shore corporations and no-tax paying millionaires.
–Republicans are back stabbing seniors.
–This is a raid on the social security lock box.
–Screws seniors, supports foreign corporations.
–Ryan’s plan will lead to senior citizens losing their social security.
–This is hands-on your social security.
–Big government stealing the savings that came out of the paychecks of now senior citizens.
–Republicans rob seniors to pay General Electric.
–Euthanization reduces corporate taxes.
–Firing squad pointed at senior citizens.
–Better Dead than Red.
Heck, this is no different than RomneyCare/ObamaCare—”let’s make everybody buy private insurance and give them subsidies/vouchers to help”. After they’ve spent the last year telling us how mandated private insurance is the bestest thing Dems ever did, they’re gonna have a tough time arguing now that mandates are bad bad bad.
Of course, Dems would not have that problem if they hadn’t sold out their principles and had instead stuck to their decades-long goal of government-provided health care for everyone.
I vote for “Euthanization Reduces Corporate Taxes!” as a great post title.
“Chevron Loves You” /s
Exactly.
Most of the GOP are a-holes and bastards.
And greedy, disingenuous bastards at that.
Don’t forget their battle cry….
“Fuck you…I got mine!”
The grubby little pigs are rubbing their hands over the idea of getting a hold on the money that everyone (icluding the so called “untaxed poor”) have been paying into Medicare and Social Security. This way it is a two fer if they can’t get rid of it then they can use it to enrich the already rich and morally repugnant people they call a base.
Ana side about Fox News:
I was poking around at OpenSecrets.Org (a website that tracks campaign contributions), and happened to notice that 71% of News Corp’s contributions for 2009-2010 are going to Democrats. Yes, that’s right boys and girls—-the owner of Fox News and the Wall Street Journal is giving almost three-fourths of its money to Dems, not Repugs.
See, Sarah was right, there are death panels. The only thing she got wrong was that she put them ont he wrong side of the aisle. Fuck everyone on that side of the aisle, they are truly the drag on society.
If Obama and the Blue Dog dems won’t walk with protesters in Wisconsin won’t point out obvious holes in a budget that takes from the middle class and gives to the rich then there is no Dem party there is only the GOP. A GOP which pretends to be Dem sometimes.
As if we need more evidence of Obama’s spinelessness… let’s just see where he comes out on this crap…
So much for safety nets… Those of us who need those nets just don’t have the funds for campaign contributions like the corporations, so does that translate into “non-essential”, “not valuable” for Obama and his Republican ilk?
News Corporation 2008-2010 cycle donations per Open Secret
and they’re exporting it to a shore/fish/air near you
Gee a right wing think tank has deemed the plan TEH AWESOME and declared it just what we need. Color me shocked. Not.
Let me know when the CBO rates his piece of crap then we’ll talk.
Who cares? So the lying sacks of shit at FOX are betting red and blue simultaneously. It isn’t like it’s a big secret there are utterly corrupt corporately owned Democrats too.
Agree with all of your headlines, which are quite factual. This one stands out, though, bc – especially over the past week or 2 – we’ve had numerous sock puppet rightwing bloggers swing through here pretty expressing their abject loathing towards and dismissal of seniors who actually expect to live on the money that the Seniors contributed to the Soc Sec Insurance program.
Several stated flat-out that it was “completely wrong” to expect to use Soc Sec in retirement to live on. The explanation for why came out as typical “libertarian” gobbledy-gook about being rugged individualists who shouldn’t “rely” on the gov’t to live… neglecting, of course, to acknowledge the inconvenient FACT that Seniors had been contributing to this annuity insurance program all their working lives, and it’s, in fact, THEIR money that they want back.
Some citizens, though, will definitely clap, cheer & dance with unbridled glee to witness THEIR Soc Sec funds being ripped off by the Elites. No further comments to avoid being moderated.
abso-fucking-lutely! my comment was on the size and the sign (surplus vs deficit).
still needs to be bigger (balance sheet recession — households and much of the private sector need to pay down debt). explanation is in the second link in my comment @3.
how about taxing economic rent of all kinds? (not that there isn’t over lap). def agree that tax policy is in need of major overall.
the point about the size of the fed gov deficit was not meant as a sufficient policy, just as a necessary one (to include with wise spending priorities, taxes, and other needed policies).
mostly was just trying to make the point that a fed gov budget surplus would be a very bad thing. especially right now.
i don’t know about you, but i’d rather not wait for the cbo to get its act together.
SOS from the reich wing: GOP has again moved goalposts for budget compromise, Dems say
Agree. Nearly ALL politicians at the Fed level, at least, are multi-millionaires (if not billionaires). They are all in cahoots to see that the system inures to their own personal gain, along with to the benefit of the upper 1% who own 40% of this nation’s wealth. Doesn’t matter if they have a D or an R or even an I next to their name: they’ve nearly all sold out and are corporatist tools working soley for the Elites.
I don’t think most conservatives are wildly stupid. They fall for con artists calling themselves “conservative” leaders and mouth the talking points about as often as liberals and progressives fall for con artists calling themselves “liberal” or “progressive” leaders.
What did Obama do to earn anyone’s support or vote in 2008? Nothing more than spout a lot of flowery rhetoric.
Olbermann supported and voted for that con artist.
Mighty f*ing stupid, Mr. Olbermann.
So did a lot of us, Knox. And most of us want our votes back…
…and in 2011 this is news why, exactly?
Anything economic coming out of the Heritage Foundation is unadulterated crap. It is probably even worse than what comes out of the Cato Institute. Neither of these tanks have any more credibility than the Creationist Theme Park.
From a strictly macro-economic perspective, it is too small. The reason why the economy is in the tank is that there is not enough demand: what that implies is that people are trying to save too much (to get some cash on hand for when they lose their jobs). That saving is identical to the demand short-fall at hypothetical full employment. To fill the gap, some other sector has to run a deficit. It could be the business sector financing investment with borrowed money (hand-wave to the Confidence Fairy), it could be foreigners who are prepared to go into debt to us by buying more from us than they sell (hand-wave to the Chinese); but in most cases it has to be the Government, which we used to be able to count on. This is short-run macro-economics and stems from the income-accounting identities. It’s not rocket-science, but to listen to the talking half-wits on teevee, you’d think it was.
Actually there is nothing tricky about it ! It’s a death panel waiting to happen.I for one could not afford to pay for private health ins.for my wife and I ! For me it’s a death sentence ! Along with extreme heart problems I will most likely be on Dialysis in the near future the cost of care just for me would be prohibitive. (which means I will not be able to afford to go on Dialysis)I would like the Media to take seriously the effect this will have on Seniors who most likely will live much shorter lives because of the so called conservative agenda!!! It has become clear that the GOP has nothing to do with the well being of the American way of life,It’s Children,Mothers,Fathers and Grandmothers and Grandfathers are simply fodder for the enrichment of the Filthy wealthy and The bought and paid for Faux Politicians.My thoughts on how to resolve this are simply that many people are going to die in this Country before any real awakening ; Even that might not mean anything because by that time the plight of the American Worker could force them into subjugation.
There are many admirable things about Olbermann, but his “conservatives are stupid” thing is not one of them.
Obama is a far bigger problem for progressives than Boehner, Ryan, Palin, and Beck combined.
On this point, Olbermann needs to get his head out of his ass. Seems like it’s been up there at least since late 2009 (around the time he delivered the Special Comment in which he strongly opposed the individual mandate).
Yeah, for some reason the “search” function there doesn’t seem to work on individual companies.
Go to the “Influence and Lobbying” tab and click on “Interest Groups”.
In the side menu, click on “Top Interest Groups to Congress”, then, from the list that appears, go to “TV/Movies/Music” and click on that.
Then look at the top of the page and find the tab that says “contributors” and click on it.
Look down the list of top contributors until you see News Corp (the Rupert Murdoch company that owns, among others, Fox News and the Wall Street Journal).
Look at the amount News Corp has given–and then look at the percentage of those contributions which have gone to Democrats and Republicans:
News Corp &385,383 71% 27%
For more fun, click on News Corp’s name, scroll down to “top recipients”, and click on “view more recipients”:
top ten recipients of News Corp money:
Boxer, Barbara (DCA) Senate $57,000
Waxman, Henry A (DCA) House $31,900
Berman, Howard L (DCA) House $28,350
Schumer, Charles E (DNY) Senate $15,000
Reid, Harry (DNV) Senate $13,100
Bono Mack, Mary (RCA) House $12,000
Maloney, Carolyn B (DNY) House $11,500
Leahy, Patrick (DVT) Senate $10,900
Boehner, John (ROH) House $10,700
Pelosi, Nancy (DCA) House $10,000
It’s actually more interesting than that. The vast majority of industries do indeed give their money to both parties, flipping the majority of their support from one to the other according to who is in power at the time. But there are indeed a tiny number who DON’T do that and who DON’T bet both sides–they consistently give the majority of their money to the same party, year after year. On the Repug side, that includes the oil/coal industry, the chemical industry, and the forestry industry. On the Dem side, it includes the media industry. Including News Corp. With one exception, News Corp has given the majority of its money to Dems every year since 1998.
I find that interesting.
I have no intentions of waiting to criticize the plan but I’m perfectly serious on the CBO scoring the thing. I’m sick to death of Republican policies getting passed with no questions asked while the GOP constantly insists that the Democratic policies will tank the econmy. Particularly when the non partisan CBO has shown that policies like infrastructure spending and help for the poor are far better for our economy then tax cuts for the rich.
Because they did the same thing in 2008, 2006, 2004, 2002, 2000 and 1998.
And will again in 2012.
According to OpenSecrets.Org, the top 25 net worths in Congress as of 2009 (the latest year for which figures are available) are:
(since members report broad ranges, not specific amounts, this can only be estimated–the figures here are minimum estimate, average, and maximum estimate)
1 Darrell Issa (R-Calif) $156,050,022 $303,575,011 $451,100,000
2 Jane Harman (D-Calif) $151,480,522 $293,454,761 $435,429,001
3 John Kerry (D-Mass) $182,755,534 $238,812,296 $294,869,059
4 Mark Warner (D-Va) $65,692,210 $174,385,102 $283,077,995
5 Jared Polis (D-Colo) $36,694,140 $160,909,068 $285,123,996
6 Herb Kohl (D-Wis) $89,358,027 $160,302,011 $231,245,995
7 Vernon Buchanan (R-Fla) $-69,434,661 $148,373,160 $366,180,982
8 Michael McCaul (R-Texas)$73,685,086 $137,611,043 $201,537,000
9 James E. Risch (R-Idaho)$38,936,114 $109,034,052 $179,131,990
10 Jay Rockefeller (D-WVa) $61,446,018 $98,832,010 $136,218,002
11 Richard Blumenthal (D-Conn)$64,210,256 $94,870,116 $125,529,976
12 Dianne Feinstein (D-Calif)$46,055,250 $77,082,134 $108,109,018
13 Frank R. Lautenberg (D-NJ)$49,083,204 $76,886,611 $104,690,018
14 Nancy Pelosi (D-Calif) $-7,356,915 $58,436,537 $124,229,990
15 Alan Mark Grayson (D-Fla)$31,411,044 $54,966,522 $78,522,000
16 Gary Miller (R-Calif) $19,365,053 $51,833,526 $84,302,000
17 Bob Corker (R-Tenn) $9,778,047 $50,717,522 $91,656,998
18 Diane Lynn Black (R-Tenn)$14,673,049 $49,409,519 $84,145,990
19 Rodney Frelinghuysen (R-NJ)$19,898,179 $43,797,589 $67,697,000
20 Rick Berg (R-ND) $19,347,579 $39,164,515 $58,981,451
21 Nita M. Lowey (D-NY) $14,900,036 $39,012,518 $63,125,000
22 Kenny Marchant (R-Texas)$13,303,385 $38,204,868 $63,106,351
23 Brian P. Bilbray (R-Calif)$25,143,635 $37,819,629 $50,495,623
24 Harry Teague (D-NM) $21,119,041 $37,102,019 $53,084,997
25 Denny Rehberg (R-Mont) $6,598,014 $31,421,505 $56,244,997
The CBO is really bad. James Galbraith explains it better than I can:
http://www.huffingtonpost.com/james-k-galbraith/why-the-fiscal-commission_b_631269.html
As for Selise’s original comment, I don’t believe that it was in any way in support of the Ryan plan. It was merely pointing out that budget surplus’s are bad right wing economics.
The ongoing GOP war on our seniors, the poor, and disabled continues unabated. Ryan’s budget demonstrates that he is your typical GOP corporate lickspittle with his suggestion that we privatize and voucherize Medicare and effectively kill Medicaid with his block grant proposal. Two-thirds of Medicaid funding provides healthcare to seniors and the disabled. So when are the Dims going to mount a counter offensive against the GOP attacks?
thank you knut!!!!
now, if i could impose on you further… your help is desperately needed over in aisle 5: To Reduce Deficit, Government Can Destroy Medicare – or Expand It
exactly right, thank you!
After seeing and hearing the fully powered (snark alert) offense/defense the Sell Out D Party and it’s leadership/coaching team put up during 2009.
When the D Party ruled both the WH and Congress and gave us ObamaCare which is more aptly called AHIPProfitsCare.
Now Congressman Paul Ryan(R) — who is from where Scott Walker now governs — is building on the Obama WH and D Party controlled Congress “win” of putting mandated AHIP Join In/Pay In into HCR during 2009/early 2010.
ObamaCare — what Obama and Pelosi and Reid “fought and compromised for” is not Medicare For All or even Medicare For More. ObamaCare is reduced or made smaller government based healthcare access/funding security.
ObamaCare is anchored around the private sector AHIP premised /individual based ability or inability to buy or pay for health insurance for profit.
With less healthcare or sickcare security.
With now mandated AHIP Join/Pay In being placed on jobless,poor,high health risk Americans.
Is ObamaCare the better American HC cost rise slow down or HC base floor raiser America’s economy and so many Americans needed? No.
Paul Ryan now suggests what America and Americans should have is not current Medicare or Medicare For All but Medicare For None.
Who still thinks Barack Obama and his D Party put up a big fight during 2009 for American HC Single Payer? He did not. Did Obama stand up for expanded and more universal Medicare For More or Medicare For All? He did not.
This is not about the D’s being “better” than the R’s. They are not based on what the D’s did during 2007,2008,2009 and 2010.
President Obama and his D Party run Congress and D Party leadership gave AHIP and PhARMA the politics and political outcome(s) they wanted or paid for in 2009. Not the R’s.The D’s.
Who still thinks President Obama and his D Party are going to actually fight Paul Ryan and this frontal attack on Medicare?
President Obama shut down discussion/consideration of single payer in 2009. There will be no Medicare For More or Medicare For All while Barack Obama is POTUS.
Paul Ryan’s plan is to take away full public funding and privatise to several levels of private pay to stay Pretend Medicare. OK if you are wealthy,healthy and stealthy. Ryan is buidling on ObamaCare’s AHIP based premise for a individual,private — not public based — Join/Pay In Mandate.
Will Paul Ryan’s plan at some point get the now well known Obama pre-sellout political deal?
While Obama in public pretends otherwise until it is politically convenient to stop the pretending?
Are you in?
NONSENSE!
of course there are such economic proposals. you just won’t see them coming from party leaders (either party).
interested yet?