Mr. Hastings voted for the 2012 Budget that the House passed last week. The Ryan plan, as this budget is called, does not run a budget surplus until about 2040. Here is what David Stockman (R) wrote about it today:
“By 2014, for example, the Ryan plan does not save a dime from the $2.2 trillion baseline for Social Security, Medicare and national security spending. Then it extends all the Bush tax cuts at a cost of $350 billion while instructing the states to reduce spending for the poor by $100 billion and the Congress to slice domestic discretionary spending by 25 percent. That toxic brew is likely to find few takers — even at a Mad Hatter’s tea party.”
Stockman declares that Obama’s proposal is slightly better than the Ryan plan. I enjoyed reading his entire op-ed piece because he takes a stab at both Keynesians and supply-siders, all couched in everyday language within everyone’s grasp.
I found an example of supply-siders searching for validation in the Republican Staff Commentary titled “Spend Less, Owe Less, Grow the Economy” dated March 15. The paper presents four examples of fiscal contraction that the authors believe led to economic expansion. In every case – Canada, Sweden, New Zealand and Ireland – there were significant forces at work that were never mentioned. The April 18 issue of Bloomberg Businessweek, p. 35, briefly critiques each of these cases with a rebuke to the contraction/expansion believers.
I used to write to Mr. Hastings to tell him that the Bush Administration economic policy was unsustainable. Because Mr. Hastings not only made bad decisions, but led the way on trillions of borrowing; he is accountable for the 40% loss of value of the dollar between 2001 and 2008 and for other conditions that led to the Great Recession.