Saturday, April 30, 2011

Would GOP Budget Actually Reduce the Deficit?

Jonathan Cohn, April 29, 2011 | 12:00 am

Discussion of the House Republican budget has focused mostly on the privatization of Medicare, the block-granting of Medicaid, and the repeal of the Affordable Care Act. And that’s appropriate, given the magnitude of the changes and widespread impact they would have. But those proposals are obscuring some other proposed shifts that, in any other context, would be plenty troubling for their own sake. This week I'll highlight five of them. So far, I've written about radical changes to the Supplemental Nutritional Assistance Program (SNAP), changes in the eligibility age for Medicare, a crucial weakening of financial reform, and a neglect of infrastructure. Today I conclude by assessing just how much the Republican budget would actually reduce the deficit.

One reason you hear so many people describing the House Republican budget as “brave” and “serious” is that it would dramatically reduce the deficit. Yes, it would take health insurance away from millions of people, unravel the safety net, and allow America’s infrastructure to deteriorate further. But at least it would substantially improve the government’s fiscal outlook.

And yet that's not as true as you might think, particularly in the first decade. When House Budget Chairman Paul Ryan unveiled his proposal, he announced that it would reduce government spending by $5.8 trillion and reduce deficit spending by $1.6 trillion in its first ten years. But Ryan included in his spending reductions the savings from ending the wars in Afghanistan and Iraq.

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