The proposed budget by the U.S. House Republicans really illustrates what the Grand Oil Party really stands for: throwing money at the super rich while shredding the social safety net and attacking the poor and the middle class.
Nobel Prize Economist Paul Krugman calls the budget floated by Paul Ryan “Ludicrous and Cruel” saying it is “voodoo economics …with an extra dose of fantasy, and a large helping of mean-spiritedness.”
The budget assumptions are based on an unemployment rate of 2.8 percent — “a number we haven’t achieved since the Korean War,” and according to the nonpartisan Congressional Budget Office (CBO) the large part of the supposed savings from spending cuts cutting programs that mainly serve low-income Americans will go to pay for more tax cuts for the rich. “In fact, the budget office finds that over the next decade the plan would lead to bigger deficits and more debt than current law. “
LA Times columnist Tim Rutten says Ryan’s fantasy plan “would push the aged into poverty,” calling it an “attempt to abolish Medicare and gut Medicaid, while further lowering the taxes paid by corporations and wealthy individuals.”
It just goes to reason that they want to kill Medicare because it's the most efficient and popular health insurance program in the country with more of each dollar going into actual health care instead of overhead and profits and salary for the CEO. In fact, the prigram operates with 3 percent overhead compared to 15-30 percent by for profit providers.
The CBO has outlined what adoption of this proposal to supplant Medicare with vouchers and private insurance exchanges would mean, and it means “the overall cost of healthcare would go up, and retirees' out-of-pocket medical expenses would double — an increase that would push tens of millions of people living on fixed incomes over the financial brink.”
Henry J. Aaron, a Senior Fellow of Economic Studies at the Brookings Institution, confirms that Ryan’s will not reduce the deficit, calling the plan “radical, almost otherworldly.”
In addition to killing Medicare and cutting Medicaid by 75 percent, it cuts spending on just about everything the government does. “By 2050, government spending would be a smaller share of the economy than in any year since the presidency of Herbert Hoover,” and we know how well that turned out. “Among the programs that would suffer drastic reductions would be national defense, housing, education, agriculture, the environment and veterans affairs.”
It’s funny that Republicans like Ronald Reagan and more recently Dick Cheney said deficits don't matter, but now at a critical time when we are coming out of the longest and deepest recession since the Great Depression deficits now matter. It’s like they want the economy to tank.
