I was elated to hear Paul Ryan picked for the rebuttal to President Obama’s State of the Union Address. We graduated from the 8th grade together from St. Mary’s in Janesville, Wisconsin. He knows his stuff, and he knows how to weed out fiscal fallacies when he hears them.
I clicked around some websites last night. The President will be calling for more spending programs, as if he hasn’t enough. The media is amuck with defenders of his tax-and-spend policies. Here are three horrendous fallacies that Ryan seems to find himself on the offensive…
1. “Cutting taxes = raising the government deficit.”
No, it doesn’t. Cutting taxes invigorates the economy, gives businesses the chance to hire people, and ultimately brings in more tax revenue.
This is basic Reaganomics for you (and it works!). When folks are allowed to keep their own money (most notably from cutting taxes), the economy is stimulated. When the economy is stimulated, people make more money. When people make more money, the government is able to collect more in taxes. This has been proven every time government cuts taxes. Those who claim cutting taxes would raise the deficit are claiming something that is not true.
2. “Spending cuts will mean fewer teachers, firemen, policemen, bridges, etc.”
Last week Republicans earmarked $2.5 trillion in spending cuts. Holy smokes, to think there is that much in the government’s budget is mind-boggling. See a breakdown here. There is plenty to cut without ever coming close to basic needs of governmental infrastructure. This is a false dilemma laid out by those who want to keep afloat endowments, entitlements and pork projects.
3. Government is better than privatization (of Social Security, medical insurance, etc.).
Okay. Name me one — just one — financial system that does better under government care than the private sector. Health insurance? Look at Europe or Canada. Social Security? Not many are banking on it. Welfare? Churches still trump it. Banking? Mortgages? Student loans? Truth is simple: stripping government of its purse strings means revitalization of our economy.
Still, the President will appeal for more spending. It’s offensive. If the President was interested in cutting the deficit, he would have done so by resisting the record spending these past two years.