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Sunday, April 17, 2011

Obama's Plan for the Deficit

As Ronald Reagan said, ""Republican's favorite day is July 4th, liberals favorite day is April 15th." In the spirit of April 15, Obama unveiled his master plan to solve the deficit, which is not simply poor, but actually harmful. 


The plan would supposedly save $4 trillion within 12 years. That includes tax increases. In other words, Paul Ryan's budget plan would save more money ($6 trillion) in less time (10 years) all the while reducing taxes by 10% or more. 


Moreover, Obama has refused to touch the entitlement programs he holds so dear. This is even after he acknowledged that they were a major source of pressure on the budget. Obama even refuses to increase the Medicare retirement age. On the other hand, the Ryan plan fundamentally changes the way in which Medicare and Medicaid operate. Under his plan money would be given to states in block grants to subsidize the costs of private insurance. 


With the cost of entitlement programs ever increasing, tax hikes must eventually stop being the answer. Ryan realizes this. Obama doesn't. 


The Laffer Curve proves that increases in taxation (taking money out of the private sector) will lead to reduced government revenue. Raising taxes is a corrupt solution both morally and economically. The sooner the country realizes that, the better. Unfortunately, no epiphany can come with Obama in the White House. 

2 comments:

  1. I feel more comfortable talking about ideas than people, so I will leave the President himself alone for this one. The topic of the budget, however, is near and dear to my heart. It should be very easy to make a balanced budget: this is how much we have coming in, so that is how much (or less) we will spend. Unfortunately, everyone wants to be given something, but no one is willing to pay for it. TANSTAAFL, people. Really.

    http://libertysrest.blogspot.com/

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  2. The comments about "If a household must balance their budget, then the government should as well" are really quite sensible. It is a principle so fundamentally basic, yet it seems many, if not most, of our current politicians have failed to grasp it.

    I like what you said about many people liking their entitlements, but no one wanting to pay for them. In my opinion, government policy should boil down to the fact that it is more morally acceptable not to give those people something, rather than to force others to pay for it.

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