Monday, April 4, 2011

The 19 per cent solution

Paul Ryan, the GOP's primary guy on reforms required to balance the budget, announces his plan tomorrow.  Meanwhile this article from Reason Magazine, provides a fairly complete analysis of the budget problem and a broad outline of how to go about correcting the imbalance between revenues and income that have accrued and are accruing at an alarming rate. It will be interesting to compare Ryan's plan with the one presented here.  The Reason plan calls for eliminating many government departments and subsidies and for a substantial cut in the defense budget. I doubt Ryan will propose any defense department cuts as the holy grail of the Republican Party is a strong military and the claim is that we are underfunded now.  Somehow it's hard to see how we are underfunded while conducting two active wars and a third (Libya) on the horizon.  We are probably simply doing more than we should be what with all the bases in Europe, Korea, etc.

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