Written by George Levinson   

The Republican proposals would eviscerate Medicare and lower taxes for the wealthy, clearly not the formula for deficit reduction, but at least their lies are consistent. Ryan claims that his plan would miraculously lower unemployment to 2.8% and balances the budget by 2040. The President has successfully demonized this crazy plan but has failed to put forth a serious plan of his own.

Any credible plan must include a specific commitment to balance the budget by a particular date and limit growth in the debt to that point. Ideally, it would also commit to a schedule for subsequently paying down the debt. Obama’s vague proposal to reduce the deficit (accumulated debt, I presume) by 4 Trillion in 12 years is weak. The current deficit is around 1.5 Trillion per year. By my calculation, that means we might add as much as 14 Trillion more to the debt during that period. To double the debt again would be patently unacceptable.

When Clinton left office the budget was in surplus and the debt was on track to be paid off in 7 years. Our nation could have been debt free by now. Instead Bush’s policies, spending recklessly on two wars, tax cuts and the prescription drug benefit, reversed that trend. Obama has failed to change anything in a positive way fiscally. The deficit has been particularly aggravated by his mistaken increases in war spending and by not ending the Bush tax cuts.

The Administration argues that spending to stimulate the economy and to bail out the financial system was necessary. I guess we will never know for sure whether that was correct. The big question is where do we go from here? It was appalling when Obama capitulated by extending the Bush tax cuts. That was only a few months ago, but now he argues that they need to go away? Sorry, Mr. President, you can’t have it both ways.

Obama needs to get specific about his fiscal goals and how those will be accomplished. He must provide a schedule to a balanced budget (zero deficit) and payoff of the accumulated debt. He also needs to tell us how the course will be maintained and adjusted. We need real health care reform including system changes that reduce the role of insurance companies, make the delivery system more effective / efficient and changes to the associated entitlements. (Sorry Obamacare just doesn’t make it.) Big cuts in military spending and tax reform / increases are obviously needed.

Come on Mr. Obama, take the lead and give us a responsible and comprehensive budget plan. Stop hedging to protect your political position. DO IT NOW!