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Rep. Ryan proposes radical solution to budget problem (**GASP** privatize SS, Medicare, Medicaid!)
Washington Post ^ | 2/07/10 | Ezra Klein

Posted on 02/07/2010 3:13:03 PM PST by Libloather

Rep. Ryan proposes radical solution to budget problem
By Ezra Klein
Washington Post Staff Writer
Sunday, February 7, 2010

I spent the first part of the week thinking about President Obama's proposal for next year's budget. It's a modest document meant to take current policy and nudge it forward and leftward while beginning the hard work of pushing the deficit downward. It makes its changes at the edge of the state, freezing growth here and expanding programs there.

But I spent the latter part of the week thinking about the proposal from Rep. Paul D. Ryan (R-Wis.) for what our budget should look like 60 years from now. Ryan's budget is a radical document that takes current policy and rolls a live grenade underneath it. Social Security? Ryan's adds private accounts. Medicaid? Ryan privatizes it. Medicare? Same thing. Health care? Ryan repeals the subsidy for employer-provided insurance, replacing it with a tax credit.

The boyish Ryan is a conservative darling and the ranking Republican on the House Budget Committee, but there's nothing conservative about this document. It does not respect, much less preserve, the status quo. But then, that's a point in Ryan's favor. The status quo does not deserve our respect. It is unsustainable. Left unchecked, it will bankrupt our country. On that, Ryan's radicalism is welcome, and all too rare. The size of his proposal is shocking, but it is proportionate to the size of our problem: According to the Congressional Budget Office, which examined a simplified version of his proposal, it would wipe out our projected long-term deficits.

(Excerpt) Read more at washingtonpost.com ...


TOPICS: Crime/Corruption; Editorial; Government; News/Current Events
KEYWORDS: budget; radical; ryan; socialsecurity

Rep. Paul Ryan (R-Wis.) has proposed a radical budget plan involving privatization that the Congressional Budget Office says would wipe out our projected long-term deficits entirely. (J. Scott Applewhite/associated Press)
1 posted on 02/07/2010 3:13:04 PM PST by Libloather
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To: Libloather

HOORAY Paul Ryan!

HOORAY Paul Ryan!

HOORAY Paul Ryan!


2 posted on 02/07/2010 3:15:11 PM PST by PGalt
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To: Libloather

We all want to know if Paul Ryan is Ronald Reagan Jr.?


3 posted on 02/07/2010 3:15:57 PM PST by rodguy911 ( Sarah 2012!!! Home of the free because of the brave.)
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To: Libloather

Uh-oh..........he’s beginning to talk like a libertarian. We can’t have that now! < / sarc >


4 posted on 02/07/2010 3:19:51 PM PST by ChrisInAR (You gotta let it out, Captain!)
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To: Libloather

Nothing radical about attempting, with an intelligent program, to help this Nation out of a deep hole. All others proposed, just dig the hole deeper.


5 posted on 02/07/2010 3:26:52 PM PST by mulligan
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To: Libloather
Ezra Klein - is a blogger for the Washington Post. He was formerly an associate editor for The American Prospect political magazine and an American liberal political blogger at the same publication.

Besides his online contributions, Klein worked on Howard Dean's primary campaign in Vermont in 2003

Hey, Butt-boy, Republicans have ideas too so sit down and shut up! Just because you don't agree with them doesn't mean they are radical. That title would belong to your hero, the Marxist in power.

6 posted on 02/07/2010 3:27:49 PM PST by kcvl
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To: kcvl

The last time I saw a mouth like that....


7 posted on 02/07/2010 3:30:58 PM PST by Lurker (The avalanche has begun. The pebbles no longer have a vote.)
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To: Libloather

It’s dumb to try too much at once, it’s a political loser. It would be popular to talk about a federal hiring freeze and reconfiguring public employee entitlements, that would bend the budget curve effectively. The “stewards “ of these privatized programs would be, by sad experience, dishonest and self serving as they have thus far been.


8 posted on 02/07/2010 3:34:40 PM PST by gusopol3
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To: Libloather

It is time to roll back the New Deal.


9 posted on 02/07/2010 3:45:19 PM PST by kabar
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To: gusopol3
A federal hiring freeze would do little to bend the budget curve. It is a mere pin prick. Entitlements make up almost 50% of the budget and if nothing is done by 2060, it will be over 70%. By 2030, one in five Americans will be 65 or older, twice what it is now. The entitlement programs represent an unfunded liability of close to $60 trillion.

By 2014, 45% of all Medicare expenditures will come from the General Fund.

10 posted on 02/07/2010 3:49:35 PM PST by kabar
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To: gusopol3
Just to inform you, Obama increased the number of federal employees last year by 2 million. So to get back to where we were last year we will have to downsize those 2 million government workers immediately and then start the process of cutting government even further. The communists now in power have overwhelmed the system and are betting that conservatives, once in power, will not significantly reduce the number of government employees.

Conservatives really need to show that they mean business and cut the size of government by 40 to 50 percent right away. Almost all the government does can be privatized.
11 posted on 02/07/2010 3:56:46 PM PST by orinoco
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To: kabar

But the very concept of these programs grew out of a vision of massive government, some idea of universal enrollment, etc. You can’t privatize that any more than you can the Navy. Beck’s guest Friday, a policy wonk from Manhattan Institute , seemed to think that especially the public employee pensions were a huge budgetary burden, and I ‘m not going to be convinced the idea of “30 years and out “ with 90 % pay for 2 million + federal employees is not a major part of future liabilities.


12 posted on 02/07/2010 4:01:41 PM PST by gusopol3
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To: orinoco
number of federal employees last year by 2 million.

Not by , to over .

13 posted on 02/07/2010 4:06:29 PM PST by gusopol3
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To: gusopol3
You can’t privatize that any more than you can the Navy.

Yes you can. There are all kinds of proposals to privatize SS. It is fairly easy. They did it in the UK, Chile, and a host of other countries.

Health Savings Accounts Are Crucial to Medicare Reform

14 posted on 02/07/2010 4:08:04 PM PST by kabar
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To: gusopol3

FYI: We have 60 million people on Medicaid and over 50 million on Medicare. Those numbers are increasing as the baby boom generation retires. The 2.13 million federal employees pale in comparison.


15 posted on 02/07/2010 4:10:13 PM PST by kabar
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To: kabar

Health savings accounts are for working people, I can see that; that’s still all largely in the private sector any way. I’m not doubting you, but i’d like to see the socail security privatization plan in the UK though.


16 posted on 02/07/2010 4:12:37 PM PST by gusopol3
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To: gusopol3
Any change over would be phased in. Did you read the entire article on HSA?

In FY2004, the expenditures of the Civil Service Retirement and Disability Fund (CSRDF) are estimated to reach $52.8 billion, composed mostly of annuity payments to retirees and survivors. These expenditures will be 38% as large as the $137.6 billion paid as salary and wages to current employees. Expenditures from the retirement fund will increase over the next several years until they are about 45% as large as the payroll for current federal employees. After 2015, they will fall relative to payroll expenses. By 2050, expenditures from the retirement fund will be less than one-fourth as large as the government's wage and salary payments to current employees. Estimated expenditures from the CSRDF are equal to less than one-half percent of the nation's gross domestic product (GDP) in 2004. Federal pension expenditures are expected to remain steady as a share of GDP for the next 15 years before declining from about 0.43% of GDP in 2020 to 0.20% by 2060.

17 posted on 02/07/2010 4:16:06 PM PST by kabar
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To: gusopol3
Read this if you want to see the numbers on the entitlement programs: A SUMMARY OF THE 2009 ANNUAL REPORTS Social Security and Medicare Boards of Trustees
18 posted on 02/07/2010 4:20:57 PM PST by kabar
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To: kabar

I agree with you completely on health savings accounts. However , I would like to get to the ideas of how to “privatize” compulsory programs like Medicare and Social Security. The plan needs to be the same as for Obamacare— either you buy it, or you get fined or imprisoned.


19 posted on 02/07/2010 4:23:26 PM PST by gusopol3
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To: kabar

Well, here’s one way that’s going to work itself out: people are going to be forced to delay retirement, continue to pay into the system until much closer to their check out date. For instance, me, who, if healthy will be able to retire at 75 in a body that by genetic heritage will last about 74 years, God willing.


20 posted on 02/07/2010 4:30:46 PM PST by gusopol3
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To: gusopol3
Health Accounts Are Medicare Reform

Private health accounts are a crucial component of Medicare reform. First, they would contain medical inflation to the benefit of all payers - including Medicare - by making millions of consumers more price-sensitive. Second, they would enable tomorrow's seniors to save for their retirement health expenses, including premiums, deductibles and copayments under Medicare and Medigap plans. Finally, health accounts are an investment in Medicare reform. H.R. 2596 would accustom Americans under age 65 to exercising more control over their own health care dollars. This would create an enormous constituency for future Medicare reforms based on choice and competition, rather than rationing and controls.

Here is a comprehensive review of how to reform Medicare. It is by Tom Saving, a former SS and Medicare Commission Trustee, someone I have met and respect.

21 posted on 02/07/2010 4:32:20 PM PST by kabar
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To: kabar

Thanks, that’s a good point to make but still for people in their working years.


22 posted on 02/07/2010 4:52:59 PM PST by gusopol3
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To: Libloather

he’s going to be the next Newt and I mean that in only the best way. The House GOP lost their way with with Hastert, delay and boehner.


23 posted on 02/07/2010 5:28:30 PM PST by ari-freedom (Chris Wallace: I can tell you, Ronald Reagan would never have quit.)
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To: Libloather

It would scare some of the seniors, but if seniors had privatized Medicare and S.S. all their working years, Medicare/S.S. would not be headed for bankruptcy today.


24 posted on 02/07/2010 5:32:31 PM PST by Sun (Pray that God sends us good leaders. Please say a prayer now.)
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To: kabar

I know how to cap all this and end it,you have FR mail.


25 posted on 02/07/2010 5:51:23 PM PST by rodguy911 ( Sarah 2012!!! Home of the free because of the brave.)
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To: Libloather; All

Oh my goodness .. the left is not going to like that at all.

And the president .. well it ruins all his plans to bankrupt the country .. I can hardly wait to hear what Rush and others have to say about this plan tomorrow.


26 posted on 02/07/2010 9:02:42 PM PST by CyberAnt (Healthcare is not a RIGHT guaranteed by the Constitution)
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To: kabar

Welll....it would be nice if they would not basically REQUIRE Medicare after age 66...or whatever it is....


27 posted on 02/07/2010 10:15:35 PM PST by goodnesswins (VOTE Democrat........DESTROY America)
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To: gusopol3

Read the link on post #21.


28 posted on 02/08/2010 4:26:14 AM PST by kabar
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To: goodnesswins

It is age 65. Yes, many people would like to retain their existing insurance. The percentage of doctors not accepting Medicare patients is around 10% and growing. Nine out of 10 people on Medicare have supplemental private insurance.


29 posted on 02/08/2010 4:28:58 AM PST by kabar
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To: gusopol3
It’s dumb to try too much at once, it’s a political loser. It would be popular to talk about a federal hiring freeze and reconfiguring public employee entitlements, that would bend the budget curve effectively.

It wouldn't do anything. In 2010, apending on social security, medicare, defense, and interest on the national debt will equal 102% of federal revenues. So we are at a point where we can eliminate all federal departments and employees not in these four categories entirely and not balance the budget. We are at the point where someone needs to touch the third rail if we are to survive.

30 posted on 02/08/2010 8:49:08 AM PST by Texas Federalist
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To: StarFan; Dutchy; alisasny; BobFromNJ; BUNNY2003; Cacique; Clemenza; Coleus; cyborg; DKNY; ...

ping!


31 posted on 02/08/2010 8:50:46 AM PST by nutmeg (Rush Limbaugh & Sarah Palin agree: NO third parties! Take back the GOP)
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To: Libloather

BUMP for later. If he can get any traction on this I’d be for it but the devils in the details.


32 posted on 02/08/2010 8:58:30 AM PST by YankeeReb
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To: Libloather

Ryan’s plan would be in line with Article 1 Section 8 of the Constitution! How dare he!


33 posted on 02/08/2010 9:30:39 AM PST by Man50D (Fair Tax, you earn it, you keep it! www.FairTaxNation.com)
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To: Texas Federalist
Although I hardly trust the messenger here (i.e. the WaPo blogger), Ryan's not talking about the near-term either.

the proposal from Rep. Paul D. Ryan (R-Wis.) for what our budget should look like 60 years from now

A freeze and roll back by attrition starts with something doable, now. The hiring freeze was Reagan's first shot, and when the air controllers' union tried to roll him he shut them down. By that means you start to coalesce so that some of these bigger, longer term goals become workable.

34 posted on 02/08/2010 9:49:18 AM PST by gusopol3
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To: nutmeg

Thanks for the ping!


35 posted on 02/08/2010 10:26:20 AM PST by Alamo-Girl
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To: Libloather

Some will say privatization is also wrong, because the govt. shouldn’t force SS or Medicare on us, even if we privatize.


36 posted on 02/08/2010 6:21:55 PM PST by Sun (Pray that God sends us good leaders. Please say a prayer now.)
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To: Man50D

Do you mean where it says “general Welfare of the United States;”?


37 posted on 02/08/2010 6:26:34 PM PST by Sun (Pray that God sends us good leaders. Please say a prayer now.)
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To: kabar

The Next Six Bailouts?

http://abcnews.go.com/Business/bailouts-/story?id=9456477&page=1

Was the government’s $3.8 billion infusion of cash into GMAC last week a sign of what’s to come in this new year?

Some experts expect to see billions more in bailouts in 2010 — this despite the fact that all nine original recipients of the government’s Troubled Asset Relief Program (TARP) have repaid the tens of billions in loans they received in 2008 and 2009.

Read more at abcnews.go.com ...

The next six :

Fannie Mae and Freddie Mac

Federal Housing Administration

AIG

Citigroup

States

Pension Benefit Guaranty Corporation

Other unfunded bailouts strategically and/or stupidly omitted by ABC Smooze :

FDIC

Medicare, Medicaid and ObamaCare

Social Security

Civil Servant Pensions

Many more banks when ARM’s hit and the commercial R/E bubble pops

Several trillion in short term debt rolloverswithin the next couple of years

A couple of trillion or so to foreign governments who want to cash out of Treasuries

A few trillion in added interest costs when the U.S. loses its AAA rating and/or when interest rates skyrocket


38 posted on 02/08/2010 8:23:07 PM PST by WOBBLY BOB (ACORN:American Corruption for Obama Right Now)
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