Mitt Romney hasn’t provided details so we should be grateful he’s selected as vice president a man with a detailed plan Romney says is “marvelous,” “bold and exciting,” “excellent,” “much needed,” and “consistent with” what he’s put out.
So let’s look at the five basic features of this “marvelous” Ryan plan.
FIRST: It would boost unemployment because it slashes public spending next year and the year after, when the economy is still likely to need a boost, not a fiscal drag. It would be the same austerity trap now throwing Europe into recession. According to the Economic Policy Institute, Ryan’s plan would mean 1.3 million fewer jobs next year than otherwise, and 2.8 million fewer the year after.
SECOND: Ryan would take from lower-income Americans and give to the rich – who already have the biggest share of America’s total income and wealth in almost a century. His plan would raise taxes on families earning between 30 and 40 thousand dollars by almost $500 a year, and slash programs like Medicare, food stamps, and children’s health What would Ryan do with these savings? Reduce taxes on millionaires by an average of over $500,000 a year.
THIRD: Ryan wants to turn Medicare into vouchers that won’t keep up with the rising costs of health care – thereby shifting the burden onto seniors. By contrast, Obama’s Affordable Care Act saves money on Medicare by reducing payments to medical providers like hospitals and drug companies.
FOURTH: He wants to add money to defense while cutting spending on education, infrastructure, and basic research and development. America already spends more on defense than the next five biggest military spenders put together. Our future productivity depends on the public investments Ryan wants to cut.
FIFTH AND Finally, Ryan’s budget doesn’t even reduce the federal budget deficit – not for decades. Remember: He’s adding to military spending, giving huge additional tax cuts to the very rich, and stifling economic growth by cutting spending too early. The Center for Budget and Policy Priorities estimates Ryan’s Roadmap would push public debt to over 175 percent of GDP by 2050.
So there you have it. The Ryan – Ryan-ROMNEY – economic plan.
And the five reasons why it would be a disaster for America.
(Please watch the video — and share.)
18 Responses to “The Five Reasons Why the Ryan-Romney Economic Plan Would Be A Disaster for America”
First. Unemployment will eventually lower wages, making U.S. workers more employable. It's not nice but globalization is forcing the issue.
Second. If one believes in the coming environmental catastrophe then concentration of wealth and power is the best defense against total destruction. Again, not nice but realistic.
Third. Reich's argument is complete garbage. Reducing compensation to providers is sure to destroy the whole system. Talented and highly trained people will not make their services available for less. Vouchers are a better answer. They force rationing which is the only way to keep costs under control. The most vulnerable – the chronically ill, the old, the irresponsible, the poor – will be those who are most hurt but what else is new in this world?
Fourth. This is not good if its true…but it isn't. Reich, the turd, is spinning. Badly. Ryan wants to cut education for the least talented, those least likely to benefit from it. What would you do in a time of deficits?
Fifth. The budget deficit cannot be reduced without huge suffering. Period.
In a few decades, the world will find itself needing to adapt to a climate changed world. Any infrastructure spending must accomodate this inconvenient truth. But there are no price signals to guide us to spend (invest) effectively. If the USG simply starts spending because it will be "good" for the economy, then we may find ourselves with greater debt and the wrong infrastructure.
Spider above is correct that "the budget deficit cannot be reduced without huge suffering". The only effective policy is to place draconian taxes on carbon. If you want less of something…tax it. A large carbon tax will help reduce the deficit, reduce the balance of trade deficit, and make a meaningful reduction in greenhouse gases.
We could reduce our military budget by 80% with no loss of security.
The U.S. is immensely wealthy, $500,000 per household (actually $498,000), is the average household's savings. Unfortunately the median is down to $77,300. Meaning inequality is high. But none the less, collectively we have the funds. About 1/3 of yearly income goes to the top 5% of households, all earning over $200,000 a year, and their effective overall tax rate (30%) is not much higher than the lower 90% which is about 24.5%, effective and overall (See Citizens for Tax Justice, We All Pay Taxes). The economy lacks sufficient purchasing power, call it aggregate demand, from the majority. The Romney/Ryan plan shifts income and demand from the majority — who will pay higher taxes as Reich says– to the wealthy minority (for instance Romney himself would see his tax burden decrease from 13% to 1%) — and this would add damage to an already collapsed economy. The employment to population ratio has sunk to the level of 1984, while poverty has risen to the level of 1964, inequality of income and wealth around 1929 levels. The Romney/Ryan plan will cut everything but the military by about 1/4 in ten years, and in 30 years cut it in half. What's the gain? Deflation with lower wages and slower growth if any.
your luck of common sense is dangerous. By the way are you at least a rich person?
spider – Calling Reich a turd is a disservice to turds everywhere. As soon as I saw he was the "author" I pretty much knew I wasn't going to see anything insightful.
We are so lucky to have clear-thinking individuals like spider in this country, who see things exactly like they are and encourage us all to leave them like that!
The first part is a compliment. Thanks. The second part is a snarky criticism. Surely, you can do better.
And, furthermore, Prof. Reich fails to mention that continuing on the current path with $1 trillion deficits each year for the next 10 years will push the public debt to more than 250% of GDP by 2050. So, at least Rep. Ryan and Gov. Romney have proposed a budget that will actually bend the curve downward. Why has Harry Reid failed to bring a budget to the Senate floor for a vote in more than 3 years? Why did President Obama present a ridiculous budget that even the Democrats in the House voted overwhelmingly against? Because the Democrats are cowards and the best their surrogates like Prof. Reich can do is make absurd arguments against a real and realistic budget proposed by Re. Ryan and endorsed by Gov. Romney.
First: Wages will always reflect the competitive nature of individualism. Global economy or not. For example: I was paying a young man to do some yard work for me; $10.00 an hour. He decided to expand his part-time work into a business ethic model (contract instead of hourly) resulting in nothing more than an example of American greed; instead of a fair wage for the work being done, he chose to bid the job resulting in a 300% increase in his pay (less time, $30.00 hr). This attitude will not change until we learn to develop empathy, compassion, and a work ethic that is based on one's pride in reaching human potential, not dollar success.
Second: There are a lot of stupid rich folk out there. Increase their wealth and power, add a devistating environmental castastrophy of global proportions, perhaps a billion or two deaths, and we are left with a bunch of rich peiople who wouldn't know how to plant a seed, much less milk a cow. Sounds a little Orwellian to me, "Time Machine."
Third: Profiting from the suffering of others is immoral. Profiting at the current level is sinful. Talented and highly trained people in the healthcare field began with the attitude of helping to relieve suffering; what changed that attitude into greed? The answer: success based on greenbacks. Salaried positions and bonus incentives for keeping people healthy will greatly reduce healthcare costs; in other words, preventive care and early detection.
Fourth: Everyone benefits from good education. Everyone is talented in their own way. Who is less talented? Who defines greater potential and therefore more benefit to our society? We who were born in this great country must remember that our being here is only an example of chance; random geographic accident of birth. There is no such thing as devine right.
Fifth: I don't see those who have suffering, nor do I see them proposing to suffer at all in order to decrease the suffering of others. Quite the contrary; the marching orders are to increase their ease at the expense of those who struggle to tread water.
Attitudes such as this concerning our economy, class distinctions, continued unconcern for the incredible human potential of the poor; appalling. Universal health care, equitable tax reform, and the restoration of the American belief in the intrinsic value of all is our only path forward as a united nation.
Everyone must be included and encouraged to reach their potential as participating citizen
s. We must stop being a nation of Republicans and Democrats, liberals and conservatives, and grow into being Americans.
We have at this time, as the electorate of this great country, an incredible opportunity to face our future with confidence. We must participate and make sure that our elected officials are representing the people; not just the new "persons" that we now have in our collective midst; i.e. corporations. If our elected officials do not represent the people of their districts but rather the political ideology of a few in power, what course can they follow but a toeline towards the good of a few rather than the good of us all.
Regardless of party affiliations or lack thereof, ask questions, critically examine all answers, and use your minds to determine "truth." Act; above all ACT. Get out the vote. Do not become complacent nor cynical. Each of us can affect change. Our survival as a species depends upon all of us participating as responsible civic minded citizens.
Spider – what happened to you to make you such concentrated meanness and lack of empathy? Your arguments are specious at best, cruel and arrogant at the core. Concentration of weatlh is the best defense against environmental disaster? What crazy education have you had? Your platform sounds downright feudal and fascist, which by the way if you are honest, defines the thinking of the far right among us these days. Analysis of your comments is simple "we know best how to take care of you, oh poor and simple peasants, let us control your lives, take low pay and like it or lump it, so we can live even higher", and all said in the name of freedom. No one among your ilk can define how much personal wealth is enough, but you should think about it. You conservative platform sounds alot like Joseph Goebbels to me, brilliant propaganda, disastrous results.