Sunday, October 7, 2012

Why So Long?



Why did it take Paul Ryan so long to discover the United States government was spending more than it was taking in in taxes and other revenue.  During Ryan’s term in office, he voted for the war in Iraq and the war in Afghanistan but neither proposed legislation nor voted for legislation to fund the costs of the two wars.  Paul Ryan also found it in his heart to vote for Medicare D, the drug program which ensured that drug companies would maintain their exorbitant profit margins but, like the wars, was also unfunded.  Then there was the matter of the Bush tax cuts.  Like the tax cuts in the Ryan budget plan, which would also add to the deficit, Ryan seems to be unaware that in order to avoid a deficit, the government needs to take in more revenue than the government spends.  One would think that a self-described “policy wonk” would understand that basic economic rule.  Ryan and fellow Republicans apparently are still clinging to the belief that the way to increase revenue is to reduce the tax rate.  They hold that belief when it comes to creating jobs, as well.  Well the facts prove otherwise.  In 2001, tax revenues were 19.5% of GDP. After ten years of reduced tax rates, tax revenue has fallen to 15.4% of GDP.  In most people’s accounting, 15.4% is smaller than 19.5%.  When it comes to jobs, since 1945 the Republican “job creators”  managed to create 34.7 million jobs.  During the same time, under Democratic administrations, 60.5 million jobs were created.  In other words, the Republican job creators could account for 36% of the jobs while under Democratic administrations, 64% of the jobs were created.  Ryan likes to spread the myth of a “small government” party when he refers to fellow Republican legislators, but once again, facts and reality prove him wrong.  Going back to the Carter administration, government employees shrunk by 304,000 when Democrats held the White House, but grew by 261,000 employees under Republican Presidents.  Finally, here is issue around the increase in federal debt.  Since 1941, under Republicans, the federal debt increased by $9.766 trillion dollars.  When Democrats were in the White House, the debt increased by $4.876 dollars.  Ryan may try to talk a good game, but when it comes to performance as opposed to promises, reality disproves his fictional accounts of Republican governance.
 

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