April 13, 2011 Reagan Budget Director Sneers at Ryan Budget
The skies parted and Reaganomics was born that was supposed to use the Trickle Down Theory the GOP so fondly strokes as they try to sell the snake oil 30 years later.
The republicans think that Americans have forgotten what happened in the 1980’s when a California actor who knew nothing about economics ran a failed fiscal policy.
David Stockman the former Reagan Budget Director of the Office of Management and Budget was critical of several points of the Ryan Budget namely the lack of cuts in military spending.
Stockman actually laughed at the Ryan proposal saying it would have no affect on unemployment as Ryan claims. The Ryan plan cuts taxes for the rich and we need a big hanky for that one. The US borrows money from China today, to afford the tax cuts for the wealthy.
The Bush Tax cuts will expire in 2 years, although President Obama will reverse this and let them expire as an election year topic. When former President Clinton handed over the economy to the Republicans there was a surplus, low unemployment, high job creation and it all disappeared.
Paul Ryan’s Budget The numbers of 6.1 trillion reduction in spending over the next 10 years does more to cut taxes for the rich only if the Democrats health care bill is gutted.
Mostly Ryan’s budget cuts and guts Medicare for seniors by 389 billion dollars and 735 billion from Medicaid for poorer folks who cannot afford insurance. However the time frame is 10 years and the cuts only marginally reduces the public debt from 16 down to 13.9 trillion at a greater sacrifice than most Americans are willing to make.
The budget battles begin as dating back to FDR, George Bush remains the highest spending President in history at a rate of 22.8 percent of GDP.
President Obama issued a statement from White House Press Secretary Jay Carney:
” The President believes that dramatically reducing America’s long-term deficit is essential to growing our economy and winning the future. Today, Congressman Ryan laid out his vision for how to do that, and he is right that we cannot solve our fiscal challenge by focusing on the narrow slice of domestic spending that has occupied so much of our recent attention.
But while we agree with his ultimate goal, we strongly disagree with his approach. Any plan to reduce our deficit must reflect the American values of fairness and shared sacrifice. Congressman Ryan’s plan fails this test.
It cuts taxes for millionaires and special interests while placing a greater burden on seniors who depend on Medicare or live in nursing homes, families struggling with a child who has serious disabilities, workers who have lost their health care coverage, and students and their families who rely on Pell grants.
The President believes there is a more balanced way to put America on a path to prosperity. But despite our differences, all of us – Democrats and Republicans – have an obligation to find common ground in a way that is true to our values and meets our responsibilities to the American people.”
In contrast President Obama has his own Budget
Photo: David Stockman-Reagan’s Own Budget Director Critical of Ryan Budget