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Why Paul Ryan's Pick Matters
Paul Ryan matters because we need to have an adult conversation on entitlements and go beyond the stupid "grandma's gonna eat dog food," "push granny off the cliff" meme. I only pray that Florida is conservative enough that Romney can stand losing a few of the old farts and still win.
After Paul Ryan was picked, I eschewed a lot of posters' desire to just repeat the arguments used against Palin and did something old-fashioned. I actually RESEARCHED what Ryan said on the issues. I didn't have his huge budget, so I took his book Young Guns, of which he wrote a third. McCarthy and Cantor wrote the other 2/3.
What I found was interesting:
p. 116 The main drivers of our deepening deficits are the two major government health-care programs, Medicare and Medicaid. Together, they consume 22% of the federal budget---more than national defense, including the costs of two wars. The problem is most acute in Medicare. Like Social Security, Medicare faces the daunting demographic challenge of supporting the baby boomers as they retire. But its much larger problem is that of medical costs, which are rising at roughly double the rate of growth in the economy. Today Medicare has an unfunded liability--or a deficit of projected revenues under projected costs---of $38 trillion over the next seventy-five years. This means that the federal government would have to set aside $38 trillion today to cover the future benefits for the three generations of Americans: retirees, workers, and children. This translates to a burden of about $335, 350 per U.S. household.
But that's just the beginning of the bad news...By 2014, Medicare's unfunded liability is projected to grow to $52 trillion, or about $458,900 per household.
p. 117
When Social Security and Medicare are taken together, our total unfunded entitlement liability is $43 trillion, or about $379, 475 for each and every American household. In five years, that total will grow to $57 trillion, or over a half a million dollars, $500,414, per American family, rich or poor.
Income taxes would have to more than double by 2080 to fund the projected spending path. The current ten-percent income tax bracket would rise to 25 percent, the current middle bracket of 25 percent would have to increase to 63 percent, and the current top rate of 35% would rise to 88%.
This is untenable... the Ryan book says that this was the case BEFORE our recession, before the PPACA. Obviously, you can't just raise taxes and end this problem, even if people were willing to work if their taxes were 88%, which is a big IF.
Re: Why Paul Ryan's Pick Matters
Yep. Unfunded liabiilty. DH and I are into our third book about the dollar and government debt and all three (written by economists) state that the unfunded liability of SS and Medicare is HUGE. Multiple trillions of dollars.
We have paid into these, but the government has spent the money elsewhere and when Susie Q Taxpayer comes looking for her SS and/or Medicare, they won't be there. Poof. Spent.
Our national debt is "advertised" as $15 trillion, but our actual HIDDEN debt is around $100 trillion.
I have been a staunch Republican, but after reading these books, I'm liking Ron Paul a lot better. For me it sucks that he is pro-choice, though...I'm in the "save the human babies" crowd. Alas! There is no perfect candidate.
Anyway, I am happy with Ryan. And, regardless of who wins the election, our nation is headed for a huge crash.
That's scary! I'm happy with the Ryan pick as well.
I am also happy with the Ryan choice. His plan may have flaws, but it sure beats the head in sand approach by Obama.
ACA rescoring by the CBO says it will cost 3 times it's original estimates -- and we know that is just the beginning for cost over runs. ACA is designed to fail and push us into a universal health care plan.
Romney & Ryan have the skills and ability to do something significant to help.
There should be an ad up very soon that shows that the Paul Ryan plan would not affect those over 55. I also think it's important that the Ryan budget preserves traditional Medicare but also creates a choice where seniors could choose private plans as well. People who wanted to invest or save their own money could, and why shouldn't they have the choice?
To me, it's a lot like our teacher pensions. You can choose defined benefit, which is a guaranteed payout based on your salary for the last five years of teaching. You can select defined contribution, where you have money and need to manage it or get an advisor to manage it. Then there's a hybrid.
Why is this choice ok for teachers but not for everybody? I have never heard anyone on a defined benefit plan complaining that people have a choice to invest their own money. If someone has expertise and would like to, more power to him/her.