As much as the impending government shutdown is making headlines right now, it’s nothing more than the most cringe-worthy of political theater as most essential federal services will remain open anyway. Of greater importance is what direction this year’s budget takes our fiscal spending. The budget proposal released this week by House Rep. Paul Ryan is a watershed moment: it finally addressed the problem of entitlement spending programs. Although the budget is flawed (it does not address Social Security, and seeks deficit reduction while cutting taxes), it does the crucial job of getting the deficit-cutting conversation started in Congress.

Ryan’s budget will drastically change Medicare as we know it- instead of a government-run insurance program, Americans under 55 will choose a private health insurance plan on an exchange, which will then be subsidized by the government up to a certain amount. It’s the first budget to directly address the issue of entitlement spending, an act of political courage that I applaud Rep. Ryan for. The biggest issue most Americans have with Congress is that its members seem to care more about getting re-elected than actually solving any problems facing the country. Hence we have the current budget shutdown farce, John McCain sprinting to the far right during Arizona election primaries, and Michelle Bachmann… well, Michelle Bachmann in general. By proposing a budget that is painful to most Americans, Ryan is laying his political head on the line. For this, he deserves respect.

That being said, from a policy standpoint, there are still many problems facing this budget. While asking for sacrifice from lower and middle class America, it heaps tax cuts onto the wealthiest of Americans and the corporations they run. Not only is it unfair, it doesn’t address the real reason corporations aren’t hiring- namely, a lack of perceived demand in their markets. While corporations are sitting record amounts of cash on hand and unwilling to spend it, the main issue probably isn’t that they don’t have enough money to spend. On a similar tangent, Ryan’s Medicare proposal doesn’t address the real reason why health care costs are actually rising: the increased use of expensive medical technology coupled with a booming retiree population- a population Ryan specifically exempts from his proposed changes. His deficit solutions, instead of being based on sound analysis, often read like one of Fox News’ Republican talking points lists. Although his budget proposal isn’t purely done to boost political standing, it is politically influenced by flawed Republican economic ideology (private sector always good!).

Although the budget is economically flawed, it’s a starting point launched by someone who actually influences the budget creating process (Rep. Ryan is the chair of the House Budget Committee). It should finally start debate within Congress and the White House about long-term deficit reduction and give us a better picture on what the government intends to do about our economy, allowing us to better plan our future savings and investments. However, there still needs to be significant changes to the budget before it becomes economically sound and politically viable. That’s where the other members of Congress and President Obama need to pick up the plate.


(Photo: ItzaFineDay)