Let’s examine the Ryan budget.
Revenue
The Republican budget continues the Bush tax cuts which are to expire at the end of this year. The extension of these tax cuts will aggravate the federal deficit that already exists. They contributed to the deficit in order to pay for two wars as well as inadequately funding the expansion of Medicare to include prescriptions.
Supporters of the Republican Budget developed by Congressman Ryan, however, argue that the tax cuts will foster economic growth. According to them, when this occurs, prosperity will come to all classes of our society. Unfortunately, this was tried by President Hoover which led to the Great Depression. It was tried by President Bush and it led to the Great Recession.
Congressman Ryan states that tax loopholes will be closed but doesn’t specify the ones to be closed. However, the Republicans voted this year to continue the tax subsidies to large oil and gas companies despite their record profits. If this is an example of closing tax loop holes, there will be no credible effort to reduce the deficit.
Expenditures
The major change the budget stresses is in regard to Medicare. In this plan, people 55 years and older at time the budget is adopted will have no changes. They will continue to get Medicare as presently structured. For people under 55 years of age when the budget is adopted, Medicare will be privatized. An individual will be given a sum of money to purchase health insurance from the private market. The individual will be subject to the insurer’s conditions such as being denied service for pre-existing conditions or high deductibles or co-pays. Moreover, if Medicare can be altered for people under 55, what assurances exist that it won’t be changed for those over 55 in the future?
The Republicans are proud of their approval of cuts from the federal government to state and local governments. The Ryan budget expands on these cuts. Latest figures show that 300,000 teachers have lost jobs due to reduce aid to local school systems in the U.S. Since our economy is consumer driven, how can the laid off teachers contribute to our economy’s growth?
One safety net example is the Food Stamp program which is designed to help poor people purchase food. It also assists farmers. The Ryan budget nearly eliminates funding for this
program. How the poor are to obtain food becomes the responsibility of non-profits. Non-profits are struggling to meet the current needs, let alone having this additional responsibility added to their caseloads.
The Ryan budget adopted by most Republicans, including Mitt Romney, protects the wealthy in the mistaken belief that the
benefits will trickle down to benefit all working groups. It has been tried before and twice failed. If Romney is elected president with control of Congress, it will be tried a third time and our children and grandchildren will be economically harmed.
