Republican Representative from Wisconsin, Paul Ryan, was on Fox “News” the other day. He graciously took a few minutes of his time to explain the latest Republican plans to destroy the American economy.
http://video.foxnews.com/v/4622379/years-of-empty-promises/
Ryan says that the “tidal wave of debt” that is coming has to be dealt with or else “we’ll have austerity, cuts to current seniors, tax increases, a slowdown in the economy.”
There’s a lot of blah blah blah about how Obama is making things worse and the only way to give our children a decent future is to wipe out our debt. Then at the 5-minute mark, he says this:
“Getting the debt and deficit under control are some of the best things we can do to get jobs created today.”
Hmm..
There’s one of two reasons that Ryan would say that. Either a) he is an idiot, or b) he is a partisan hack.
Many European countries have been taking the sort of measures that Ryan is talking about in an effort to jump-start their economies. When faced with growing unemployment and a recession, these countries felt that austerity, or a significant cut in government spending and reduction in government debt, would be the solution.
I am not a Nobel-prize winning economist. Paul Krugman, however, is. In his March 25th Op-Ed piece, he took a look at some of the European efforts to reduce debt and create jobs.
[S]lashing spending in the face of high unemployment is a mistake. Austerity advocates predicted that spending cuts would bring quick dividends in the form of rising confidence, and that there would be few, if any, adverse effects on growth and jobs; but they were wrong.
In the video, Ryan makes a reference to European austerity and how his plan will help the US avoid that fate. Ironically, his plan is to implement austerity measures in the US. Measures that have failed to create jobs in European countries. Krugman goes on to say:
Why not slash deficits immediately? Because tax increases and cuts in government spending would depress economies further, worsening unemployment. And cutting spending in a deeply depressed economy is largely self-defeating even in purely fiscal terms: any savings achieved at the front end are partly offset by lower revenue, as the economy shrinks.
I don’t believe that Ryan is an idiot. All he has to do is look at how European efforts at austerity have further damaged their economies to see that those plans don’t work. Ryan is, however, a partisan hack. He has been gunning for Social Security and Medicare for a long time now and has apparently decided to take advantage of the current situation (and the support of various media outlets) to beat the drum for his cause. (His cause being to eliminate programs for the poor and to funnel as many tax dollars as possible into the pockets of the rich.)
So be afraid, if you want. But not of the vague threats of a “debt crisis.” Be afraid of the snake-oil salesmen who would sell you a poisonous tonic to further enrich themselves and their corporate masters.
Note: That awesome photo is from Ryan’s web site. Also, I tried to embed the Fox “News” clip, but WordPress didn’t want to let me. Not that I can blame it.