Ryan's budget is better than Obama's but it's not good enough

Ryan’s plan is weak tea. Here we are, years into a governmental deficit situation that shows no sign of ending. How is it that Ryan and the Republican leadership cannot even dream of balancing a budget over 10 years’ time? All of the discussion of reforming entitlements and the tax code and everything else is really great and necessary – I mean that sincerely – but when you cannot envision a way of reducing government spending after a decade-plus of an unrestrained spending binge, then you are not serious about cutting government. If Milton Friedman was right that spending is the proper measure of the government’s size and scope in everybody’s life, then the establishment GOP is signaling what we knew all along: They are simply an echo of the Democratic Party.

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And keep in mind that reducing government spending isn’t simply an ideological point of pride. Government spending crowds out private spending, which tends to be more efficient and effective. Raising taxes to pay for government spending (or even to reduce deficits) is a tough slog. Former Obama chief economist Christina Romer’s reputation-making works shows that raising taxes 1 percent of GDP to cut deficits leads to a 3 percent reduction in GDP. And as Veronique de Rugy has written, the most-proven way countries with advanced economies have reduced debt-to-GDP ratios is by cutting spending. It’s not by raising spending and raising taxes.

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