Paul Ryan Speaks the Unspeakable

by Burt on April 6, 2011

Congressman Paul Ryan has done what needs to be done: ask Americans to make fundamental changes in what they expect government to do. His proposed budget for 2012 makes three categories of changes. First, he proposes to slash government’s role in the healthcare business. He wants to repeal Obamacare, to provide a kind of voucher for medicare, and to improve competition by giving more of the medicaid program to the states. Fifty years ago, the U. S. government had barely a finger in the healthcare business, and so Ryan exposes the out-of-control increases in free medical care that have ballooned since 1965.

Second, Ryan wants to cut programs that began with FDR in the 1930s. Gone will be Fannie Mae, which helped create the housing crisis that caused the current recession. No more bailouts either. FDR used the Reconstruction Finance Corporation (RFC) during the 1930s and 1940s to bailout corporations and give them welfare. Obama brought back bailouts on steroids, and Ryan wants it all stopped. He also pledges to trim Social Security, which, as FDR said when he started it, was all about politics, not fiscal soundness.

Finally, Ryan wants to cut corporate tax rates. On the surface, that seems like a contradiction. Why cut tax rates if you are trying to balance the budget? What Ryan recognizes is that cutting the U. S. corporate tax–which is (next to Japan’s) the highest in the industrial world–will encourage entrepreneurs and expand businesses in America rather than having them do so overseas in countries with lower tax rates, fewer regulations, and better investment climates. We should also note that often in the past when tax rates were cut, revenue actually went up. The 1920s, for example, had budget surpluses every year of the decade–and yet the income tax was sharply cut for all taxpayers during the decade as well.

Our current “politics as usual” will lead to bankruptcy for the United States. We can’t continue to go into debt at a rate of $30,000 per second every second of the year–as we are currently doing–and continue to have money left for our own lives. Many politicians have approached the budget crisis with suggestions for minor cuts here and there. Congressman Ryan wants wholesale revision in the way government works, and that kind of change and that kind of change only will keep the American dream alive for our next generation.

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