Friday, November 12, 2010


Here is the straight dope on the budget deficit commission and their plans for our future.

http://delong.typepad.com/.a/6a00e551f080038834013488e3fd94970c-pi

For those budget peacocks on the right, here is the reality on America’s fiscal future.

  1. The bottom light blue region is discretionary spending, which is everything not Social Security and Medicare and Medicaid. It makes up about 10% of GDP, going forward, and as far ago as 1976, it was at 15%. Oh the horrors.
  2. Social Security - the dark blue in the middle- will slightly cost more by 2032, and then flattens out for forever, or until we do another baby boomer event, and then 65 years after that, then social security’s cost will bump up for a generation again.
  3. Medicare and Medicaid are the big, blue wedge that expands upwards forever.

Now, the great Senator Alan Simpson and his deficit busters look at that graph, and deduce that the problem is we need to cut social security and discretionary spending, and put a cap on government spending of 21% of GDP; which means they’re calling for a death panel type, government rationing of Medicare and Medicaid. There is no other way to meet their 21% goal and fully fund both programs. So the same people who went a Tea Partying on the Koch Bros. buses, screaming about govmint rationing just got it in spades. I guess the problem is, conservative voters want one thing, and they get duped time and again by conservative politicians.

They also have on the chopping block communist programs like schools on military installations for soldier’s kids.

How did they get here? If you go to the “tax reform” section, they list as their number one priority “lower rates” and last “reduce the deficit.” A Blue Ribbon Deficit Commission lists as their own priorities lowering tax rates first, and lowering the deficit last. This is why conservatives can’t be trusted. Of course, since the conservatives on the commission demanded tax cuts, they are a plenty, top rate down to 28%, corporate rate at 26%. Social security cuts for those making over $25,000 a year.

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