US Fiscal Responsibility-Paul Ryan Takes and Adult Approach

Forget that we are going to kill 20,000 children if nasty Republicans do “X”; or millions will starve if the Republicans do “X”; the ugly truth is that maintaining status quo is a death sentence for this once great nation.  Making $6B in cuts in a $3.5T budget is not even a remotely serious fiscal approach to reducing our staggering deficit. 

Paul Ryan, Republican from Wisconsin, has created a blueprint that will build a clear path towards fiscal solvency.  The left will blast him as mean-spirited but those who created this fiscal disaster, Democrats and Republicans alike, are the mean-spirited Americans.  Ryan’s plan includes:

  • The details of the plan will be published on Tuesday, April 5th
  • 2011-2012 Budget that Begins October 1st, 2011
  • Top Line:  $4 Trillion Budget Cuts over next 10 years, $400 Billion/Year average.
  • Budget Levels revert to Pre-2008 levels.
  • Medicare:
    • Those 55 and older-No Change
    • Those under 55:  As they become eligible, they would be enrolled in a premium support system where by the individuals could choose their own level of care from private carriers/providers and they would receive a federal subsidy to help defray HC insurance costs.
    • There would be some means testing whereby those who could afford to pay more would receive less subsidy.  Today, you have no choice to be a part of medicare.  You can’t substitute your own plan even if you wanted to.  IT IS AGAINST THE LAW.  How dumb is that?
  • Medicaid:
    • This is Federally Subsidized healthcare for low-income people and is administered by the individual States.
    • The State’s governors would have more discretion of who their own Medicaid plans are structured.
    • Levels of spending would increase every year but at a lower percentage than current rates.
  • Discretionary Spending Cap:  A statutory cap based on a percentage of the economy would be imposed on future Congresses/Administrations to prevent runaway discretionary spending like it is now.
  • Lowering and flattening of tax rates with NO new tax increases.
  • Social Security
    • Probably similar to Medicare where those over 55 would not be impacted
    • New investment alternatives would be provided
    • Non Retirement programs that have been placed inside of Social Security by Congress over the years would probably be isolated as standalone programs and funded differently. 

The devil will be in the details but there has to be a real blueprint to get us out of the mess that the Government has created.  The demagoguery will be incredible when Ryan’s plan is released.  “millions will die!”  “America will end as we know it!”  and anything else you can possibly imagine.  The bottom line is that we are broke.  You can’t spend your way out of debt by printing more money.  That has been tried in the past but human beings have not been really good at learning from history.  We can only hope that a few good men and women have the guts to come out with a plan, sell the truth to the public, and put the plan in place and stick with it.  We will see if there are any modern politicians of the calibre of James Madison, Thomas Jefferson, John Adams, and Sam Adams.  IF there are, we will survive and probably be a stronger nation.  IF not, we will go the way of Greece (ancient), Egypt (Egyptian Empires) and Rome (Roman Empire).  We will become footnote of history that really could not stand the test of time.

RD Pierini

http://hosted.ap.org/dynamic/stories/U/US_GOP_2012_BUDGET?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2011-04-03-10-33-40

http://www.reuters.com/article/2011/04/02/usa-fed-paul-idUSN0214517620110402?feedType=RSS&feedName=rbssFinancialServicesAndRealEstateNews&rpc=22&sp=true

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