Commentary Magazine


Topic: entitlement spending

Ryan-Bashing Makes Dems Status Quo Party

So much has happened in the last three years that it seems like much longer since Democrats thought they could use a backlash against a budget proposal from Rep. Paul Ryan to take back control of the House of Representatives. The trial case was a special election in New York’s 26th Congressional district in which a Democrat took a seat previously held by the Republicans in May of 2011. That race was somewhat misleading since the GOP candidate was hobbled by the presence of a false flag Tea Party candidate on the ballot and Republicans took the seat back the following year. But though the campaign strategy of portraying the House budget chair and his fellow party members pushing grandparents over the cliff never really caught fire elsewhere, Democrats are still enamored of the theme and apparently will try again this year in the wake of Ryan’s latest proposal which will be passed today by his committee.

The headline in the New York Times article on the budget summed up the Democratic approach: “Ryan Budget Would Cut Food Stamps and Medicaid Deeply.” The point of that piece as well as the first salvos from the left is that the GOP is attempting to punish the poor while increasing defense spending and cutting taxes for the wealthy. In a year in which President Obama has sought to distract the public from his domestic and foreign policy failures by claiming that income inequality is the country’s biggest problem, the Ryan budget is perfect fodder for administration talking points helpfully doled out by liberal outlets like the Times. As Politico notes, just as they tried unsuccessfully to do in the last election cycle, Democrats hope they can use Ryan to propel them to victory in 2014.

But while the Wisconsin congressman and 2012 GOP vice presidential candidate may seem like an all-purpose piñata custom designed to boost Democratic fundraising and turnout, Ryan’s serious attempt to deal with the nation’s long-term debt problem is not be quite the gift they think it is. Though Ryan’s effort presents Democrats with a target to shoot at, it also demonstrates again that there is only one political party that is actually thinking about how to deal with the country’s long-term problems and it is not the one headed by Barack Obama.

Read More

So much has happened in the last three years that it seems like much longer since Democrats thought they could use a backlash against a budget proposal from Rep. Paul Ryan to take back control of the House of Representatives. The trial case was a special election in New York’s 26th Congressional district in which a Democrat took a seat previously held by the Republicans in May of 2011. That race was somewhat misleading since the GOP candidate was hobbled by the presence of a false flag Tea Party candidate on the ballot and Republicans took the seat back the following year. But though the campaign strategy of portraying the House budget chair and his fellow party members pushing grandparents over the cliff never really caught fire elsewhere, Democrats are still enamored of the theme and apparently will try again this year in the wake of Ryan’s latest proposal which will be passed today by his committee.

The headline in the New York Times article on the budget summed up the Democratic approach: “Ryan Budget Would Cut Food Stamps and Medicaid Deeply.” The point of that piece as well as the first salvos from the left is that the GOP is attempting to punish the poor while increasing defense spending and cutting taxes for the wealthy. In a year in which President Obama has sought to distract the public from his domestic and foreign policy failures by claiming that income inequality is the country’s biggest problem, the Ryan budget is perfect fodder for administration talking points helpfully doled out by liberal outlets like the Times. As Politico notes, just as they tried unsuccessfully to do in the last election cycle, Democrats hope they can use Ryan to propel them to victory in 2014.

But while the Wisconsin congressman and 2012 GOP vice presidential candidate may seem like an all-purpose piñata custom designed to boost Democratic fundraising and turnout, Ryan’s serious attempt to deal with the nation’s long-term debt problem is not be quite the gift they think it is. Though Ryan’s effort presents Democrats with a target to shoot at, it also demonstrates again that there is only one political party that is actually thinking about how to deal with the country’s long-term problems and it is not the one headed by Barack Obama.

As he did with his previous budget proposals, Ryan does what pundits are always asking Congress to do and actually addresses the country’s budget dilemma and tries to provide a solution. While Democrats are grandstanding about the plight of the poor while proposing ideas like increasing the minimum wage that do more to hurt employment and the needy than help them, Ryan is seeking an answer to the question of how to actually create a new approaching to governing that is not based on kicking the can down the road. His approach to social welfare spending is not, contrary to the mischaracterizations of his opponents, to end them but to reform programs like Medicaid in such a manner as to make them viable in the long term and to provide individual with more choices and control over their coverage. Those government expenditures that he rightly wishes to eliminate are liberal playgrounds such as the Corporation for Public Broadcasting and other frills that may please some people but are not the responsibility of government.

The key to his proposal is an effort to cut the “autopilot spending and interest payments” — what he rightly calls the “drivers of our debt.” The point is, unless we address entitlement spending head on, the country’s out-of-control taxing and spending will sink the nation in a sea of red ink that will ensure that promises of future benefits will only be kept by a crippling tax bill that will burden future generations and undermine chances for economic growth. What Ryan is offering the country is reform, not the promises of more government largesse paid for by taxing the rich that is the staple of administration rhetoric. The choice here is not between more help for the poor and a defense of the rich, as liberals would have it, but between an attempt at solving an unsustainable debt problem and a desire to ignore that problem. Ryan’s approach may not be perfect but in attacking him in this manner for having the chutzpah to present a serious proposal for changing the way Washington does business, Democrats are proving once again that they are the status quo party that is unwilling to take a hard look at how to address the nation’s spending addiction.

Ryan’s willingness to present his ideas even though there is no chance that a Democrat-controlled Senate will adopt them provides the president’s party with an opportunity to demagogue the issues. But it also proves that in the competition for ideas, Democrats would rather be the party mired in the past rather than the one that seeks a path to a growing economy unburdened by debt. In a midterm election driven more by concern over bumbling Democrat projects like ObamaCare, which increase the debt and the size of the government, that might not be as smart a strategy as they think it, is.

Read Less

Cliff Deal Could Shift Public Opinion

If reports filtering out of Washington are to be believed there is a fair chance that a compromise will be reached sometime over the next three days that will head off the most unpopular aspect of the impending financial crisis: across the board tax increases for all Americans. That’s the good news. The bad news is that the compromise which may be crafted between the White House and the leaders of the House and Senate will avoid dealing with the spending cuts mandated by the sequestration process including devastating decreases for the nation’s defense.

President Obama and Senate Majority Leader Harry Reid have given every indication that they think it is in their interest to see the nation head over the fiscal cliff making any sort of compromise appear like a last minute rescue no matter how unfortunate its terms might be. Most Americans are of the opinion that any deal that would limit the scope of a tax increase is better than no action at all. They are right about that but the fact that it appears impossible to do anything about spending either in the short term or the long right now represents a massive failure on the part of the government. While up until now much of the public still appears to be blaming the mess on recalcitrant Republicans who oppose any tax increases, the unwillingness of the president and Senate Democrats to budge on entitlement spending even in the shadow of potential disaster may eventually lead to a shift in opinion.

Read More

If reports filtering out of Washington are to be believed there is a fair chance that a compromise will be reached sometime over the next three days that will head off the most unpopular aspect of the impending financial crisis: across the board tax increases for all Americans. That’s the good news. The bad news is that the compromise which may be crafted between the White House and the leaders of the House and Senate will avoid dealing with the spending cuts mandated by the sequestration process including devastating decreases for the nation’s defense.

President Obama and Senate Majority Leader Harry Reid have given every indication that they think it is in their interest to see the nation head over the fiscal cliff making any sort of compromise appear like a last minute rescue no matter how unfortunate its terms might be. Most Americans are of the opinion that any deal that would limit the scope of a tax increase is better than no action at all. They are right about that but the fact that it appears impossible to do anything about spending either in the short term or the long right now represents a massive failure on the part of the government. While up until now much of the public still appears to be blaming the mess on recalcitrant Republicans who oppose any tax increases, the unwillingness of the president and Senate Democrats to budge on entitlement spending even in the shadow of potential disaster may eventually lead to a shift in opinion.

If some sort of narrow deal is reached in the coming days, it will make it all the more necessary for Republicans to be even more determined to do something about spending in January. It is at that point that an overconfident President Obama may discover that once he has his long sought after tax hike on the wealthy, the GOP stand against more government spending may start looking a lot more reasonable to most Americans.

The president has been able to demagogue the issue of the rich paying what he says is their fair share and thereby avoided being held accountable for the massive increase in the national debt on his watch. Yet once taxes cease to be the sticking point, it will be difficult if not impossible for him and his party to use the soak-the-rich theme to evade a discussion about how to pay for out-of-control entitlement spending.

House Speaker John Boehner seemed to lose control of the Republican caucus last week in a battle in which conservatives opposed to a tax increase on anyone were numerous enough to prevent his Plan B compromise from passing. That was a blow to his prestige and leadership. But in the coming weeks he could recoup his losses as a united GOP will have the chance to stand up to the Democrats on entitlement reform.

It is that prospect of a new debate in which he will no longer be able to rely on the hoary claims of fairness that Obama rightly fears. It can only be hoped that there are enough Democrats in the House and the Senate who are sufficiently concerned about the impact of the fiscal cliff on their constituents in order to override the desire of the president and Reid to send the country over it.

Read Less

Entitlements Swallowing Up Federal Budget

The news today has been all health care, all the time. And understandably so. But amid the laser-like focus on the Supreme Court ruling  upholding President Obama’s new health care system, it is important not to lose sight of the bigger picture. Health care is merely the latest in a long line of social welfare expenditures, going all the way back to Social Security, Medicare and Medicaid, which have swallowed up an ever-growing share of the federal budget—and the national economy.

As this useful Heritage Foundation chart shows, entitlement spending first exceeded defense spending in 1976. Ever since, the trend has been getting more lopsided with entitlements taking up ever more of the economy and defense ever less. That gap has become especially pronounced since President Obama took office in 2009. The percentage of GDP going to the federal government grew from 20.7 percent in 2008 to 25.1 percent in 2011 before dipping slightly to 23.2 percent this year. Meanwhile, the state governments are taking another 15 percent, which means that as a total share of the economy the government is now consuming roughly 40 percent, and of that, less than five percent is going to the military.

Read More

The news today has been all health care, all the time. And understandably so. But amid the laser-like focus on the Supreme Court ruling  upholding President Obama’s new health care system, it is important not to lose sight of the bigger picture. Health care is merely the latest in a long line of social welfare expenditures, going all the way back to Social Security, Medicare and Medicaid, which have swallowed up an ever-growing share of the federal budget—and the national economy.

As this useful Heritage Foundation chart shows, entitlement spending first exceeded defense spending in 1976. Ever since, the trend has been getting more lopsided with entitlements taking up ever more of the economy and defense ever less. That gap has become especially pronounced since President Obama took office in 2009. The percentage of GDP going to the federal government grew from 20.7 percent in 2008 to 25.1 percent in 2011 before dipping slightly to 23.2 percent this year. Meanwhile, the state governments are taking another 15 percent, which means that as a total share of the economy the government is now consuming roughly 40 percent, and of that, less than five percent is going to the military.

We are, in short, becoming more like Europe—and not just because it’s now possible to get tasty croissants and frothy cappuccinos on this side of the Atlantic. In Europe, governments now consume more than 50 percent of GDP. Hence, it is no surprise that few European states are spending even as much as two percent of GDP on defense—the baseline established by NATO for its member states. The Europeans simply can’t afford to spend more on defense without cutting back social welfare programs, which the political class cannot do because it sparks riots in the streets.

This is where we are currently heading—and if ObamaCare survives political as well as legal challenges, with its estimated cost of more than a trillion dollars, we will arrive at this destination all the more quickly. We will simply not be able to pay for our defense as we have been doing. And that will be a calamity. The Europeans could afford to stint on their defense because we protect them. But who will protect us?

Read Less

Obama’s Food Stamp Presidency

Back during the Republican primaries, liberals accused Newt Gingrich of racism for pointing out that more people were receiving food stamps under Barack Obama’s presidency than ever before. But as a report from CNN shows, though spending on food stamps has doubled since the end of 2008 and more than one in seven Americans are now receiving them, the administration says that isn’t enough. The U.S. Department of Agriculture is running radio ads targeting Hispanics, the elderly and the poor encouraging those who aren’t already participating to sign up.

The USDA believes that despite the massive increase in spending on food stamps that was authorized as part of President Obama’s stimulus act, many more people who are legally eligible for assistance are not getting them, prompting the government recruitment campaign. While this can be represented as an attempt to help the poor, it is also an indication that the government’s focus is on increasing dependency and not on helping people to become self-sufficient. The push to spend more on food stamps made possible by the stimulus is making it look like Gingrich was right.

Read More

Back during the Republican primaries, liberals accused Newt Gingrich of racism for pointing out that more people were receiving food stamps under Barack Obama’s presidency than ever before. But as a report from CNN shows, though spending on food stamps has doubled since the end of 2008 and more than one in seven Americans are now receiving them, the administration says that isn’t enough. The U.S. Department of Agriculture is running radio ads targeting Hispanics, the elderly and the poor encouraging those who aren’t already participating to sign up.

The USDA believes that despite the massive increase in spending on food stamps that was authorized as part of President Obama’s stimulus act, many more people who are legally eligible for assistance are not getting them, prompting the government recruitment campaign. While this can be represented as an attempt to help the poor, it is also an indication that the government’s focus is on increasing dependency and not on helping people to become self-sufficient. The push to spend more on food stamps made possible by the stimulus is making it look like Gingrich was right.

Liberals portrayed the food stamps controversy as a diversion from more important economic issues on Gingrich’s part last winter as well as a racist “dog whistle” argument in which he was accused of trying to link President Obama to African-American poverty. But the expansion of entitlements in the last four years is no illusion.

Obama’s defenders can rightly point to the fact that the Bush administration also used advertisements to recruit more food stamps recipients. They can also note that some of the increase is due to the rise in need as the result of the economic downturn from which the country has yet to recover. But the huge increase in spending on food stamps is just part of the expansion of government spending on entitlements under this administration. Moreover, at a time when the debt is spiraling out of control as a result of entitlement spending, the spectacle of the government trying to entice more citizens to get on the dole is appalling.

While Bill Clinton, the last Democrat to sit in the White House before Obama, is remembered for signing a welfare reform act (passed by a Republican Congress over his objections) that began a historic shift away from welfare dependency, President Obama deserves the opprobrium that should attach to his efforts to reverse that trend. When the stimulus boondoggle was passed few noticed that it contained language that would allow more people to get on food stamps, especially childless and healthy unemployed adults as well as increasing the amount given away.

The Democrats have fiercely resisted Republican efforts to change the way food stamps are funded. The GOP wants to emulate the welfare reform act and send the program to the states as a block grant that would make it more accountable on the local level and decrease the power of the federal government as well as spending.

But however the money is allocated, there is no question that food stamps have become a symbol not of GOP racism but the Obama administration’s push for more dependency. Though Republicans are accused of being heartless, the result of this thralldom to the welfare state hurts the poor as well as the country.

Read Less

“The Life of Julia”

The Obama campaign released an interactive chart today called “The Life of Julia,” which purports to show “how President Obama’s policies help one woman over her lifetime – and how Mitt Romney would change her story.”

We first see the fictional cartoon Julia at age three, enjoying the Head Start program that Obama says he has “taken steps to improve.” Under Romney, we’re told, budget cuts to Head Start would result in 200,000 fewer slots per year for young children. Thanks to Obama’s birth control mandate, the 27-year-old Julia is able to “focus on her work rather than worry about her health.” Romney, on the other hand, supports legislation that would “place Julia’s health care decisions in the hands of her employer.”

The chart goes on to describe how Obama’s policies would help Julia and Romney’s would hurt her at various ages. As you can imagine, most of it is wildly dishonest. But instead of rebutting all the falsehoods, I’d rather take a look at how Obama’s policies would impact Julia throughout her life, based on another chart the White House released, buried within Obama’s FY13 budget proposal.

Read More

The Obama campaign released an interactive chart today called “The Life of Julia,” which purports to show “how President Obama’s policies help one woman over her lifetime – and how Mitt Romney would change her story.”

We first see the fictional cartoon Julia at age three, enjoying the Head Start program that Obama says he has “taken steps to improve.” Under Romney, we’re told, budget cuts to Head Start would result in 200,000 fewer slots per year for young children. Thanks to Obama’s birth control mandate, the 27-year-old Julia is able to “focus on her work rather than worry about her health.” Romney, on the other hand, supports legislation that would “place Julia’s health care decisions in the hands of her employer.”

The chart goes on to describe how Obama’s policies would help Julia and Romney’s would hurt her at various ages. As you can imagine, most of it is wildly dishonest. But instead of rebutting all the falsehoods, I’d rather take a look at how Obama’s policies would impact Julia throughout her life, based on another chart the White House released, buried within Obama’s FY13 budget proposal.

It’s the chart showing the trajectory of publicly held debt as a percentage of GDP if Obama’s FY13 budget was extended through 2084. And while it’s much more optimistic than the conservative estimates, it’s still not pretty:


Let’s catch up with Julia at her various ages and see how the publicly held debt will be doing at that point:

Age three: That’s this year, 2012. According to Obama’s chart, publicly held debt is roughly 80 percent of the GDP.

Age 17: It’s 2029, and publicly held debt is now nearly 90 percent of the GDP. Fortunately, Obama’s Race to the Top program means that Julia can “take the classes she needs to do well.” Unfortunately, both liberals and conservatives have blasted Race to the Top as a failure, and interest in refunding it has reportedly been dwindling.

Age 25 – It’s 2037, and publicly held debt as a percentage of GDP is now hovering around 100 percent. But the good news is that Julia’s personal debt burden will be reduced, as President Obama will keep interest low on student loans.

Age 37 – It’s 2049, and publicly held debt is now 130 percent of GDP. However, Obama says that Julia’s kindergarten-age son Zachary will still be able to take advantage of Race to the Top program. (Note also that even under the most generous circumstances, it has now been at least 33 years since President Obama’s last term in office).

Age 42 – It’s 2054, and publicly held debt is now 140 percent of the GDP.

Age 65 – It’s 2077, and publicly held debt is now 180 percent of the GDP. But Julia will still be covered by Medicare “as we know it,” at least if President Obama was reelected in 2012. That’s right, no Medicare reform for the next half-century, according to Obama.

Age 67 – It’s 2079, and publicly held debt is now 190 percent of the GDP. And thanks to President Obama’s 2012 reelection, Social Security is miraculously still solvent and unchanged.

Age 72 – Obama’s Life of Julia chart only shows us her life up until age 67. That’s too bad, since Julia hits a milestone around 2084, when publicly held debt will be just about 200 percent of the deficit – and rising.

We all know why debt will continue to careen out of control in the coming years. It’s entitlement spending, and even the White House acknowledges it in its FY13 budget. And yet Obama’s Life of Julia chart pretends that we can continue along the current path without fundamental changes. Instead, any reform proposals are demagogued as an attack on women’s health or children’s education.

Read Less




Welcome to Commentary Magazine.
We hope you enjoy your visit.
As a visitor to our site, you are allowed 8 free articles this month.
This is your first of 8 free articles.

If you are already a digital subscriber, log in here »

Print subscriber? For free access to the website and iPad, register here »

To subscribe, click here to see our subscription offers »

Please note this is an advertisement skip this ad
Clearly, you have a passion for ideas.
Subscribe today for unlimited digital access to the publication that shapes the minds of the people who shape our world.
Get for just
YOU HAVE READ OF 8 FREE ARTICLES THIS MONTH.
FOR JUST
YOU HAVE READ OF 8 FREE ARTICLES THIS MONTH.
FOR JUST
Welcome to Commentary Magazine.
We hope you enjoy your visit.
As a visitor, you are allowed 8 free articles.
This is your first article.
You have read of 8 free articles this month.
YOU HAVE READ 8 OF 8
FREE ARTICLES THIS MONTH.
for full access to
CommentaryMagazine.com
INCLUDES FULL ACCESS TO:
Digital subscriber?
Print subscriber? Get free access »
Call to subscribe: 1-800-829-6270
You can also subscribe
on your computer at
CommentaryMagazine.com.
LOG IN WITH YOUR
COMMENTARY MAGAZINE ID
Don't have a CommentaryMagazine.com log in?
CREATE A COMMENTARY
LOG IN ID
Enter you email address and password below. A confirmation email will be sent to the email address that you provide.