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Mr. Serious: The Ryan Budget Plan and the Beltway Media
NEW YORK - The budget proposal released last week by Rep. Paul Ryan (R.-Wisc.) includes tax cuts for the wealthy, tax hikes for the middle class, drastic cuts in spending and a radical restructuring of Medicare that would shift most of the cost of healthcare to seniors. Its dubious claims of deficit reduction rely on fatally flawed assumptions and inexplicable projections (Center for Budget & Policy Priorities, 4/7/11; CEPR, 4/11).
House budget committee chairman Paul Ryan touts his 2012 federal spending plan on Capitol Hill in Washington, DC on 5 April 2011. This so-called 'serious' plan is based on dubious claims of deficit reduction and relies on fatally flawed assumptions and inexplicable projections. (Photograph: AP Photo/J Scott Applewhite)
But much of the media coverage about the plan has presented Ryan's proposal as a serious solution to long-term budget problems, or at least the starting point of a serious conversation about the topic.
In Time magazine (4/18/11), readers learned that Paul Ryan--described as having "jet black hair and a touch of Eagle Scout to him"--has
The magazine also declared that he is "a PowerPoint fanatic with an almost unsettling fluency in the fine print of massive budget documents."
Deep into the article, readers get this parenthetical warning:
So someone with "an almost unsettling fluency in the fine print of massive budget documents" has presented a budget plan full of obvious problems.
How can both things be true?
For too many media outlets, probing the details of the plan is less important than telling an appealing political story: that finally someone has presented a "serious" budget proposal. Lacking evidence to demonstrate the plan's seriousness, media cite Ryan's biography in order to supply the necessary credibility.
Thus the Washington Post (4/6/11) explained that Ryan is "wonky" and "an unlikely revolutionary." The Post added that "Ryan studied economics in college, and in Congress he has embraced the weedy issues of the federal budget." The Post's lead wondered if Ryan can "really manage the hardest sales job in U.S. politics." The paper seemed to think so:
Ryan's "budget math" relies on, among other things, wildly implausible estimates concerning unemployment and government spending (Conscience of a Liberal, 4/6/11). As salesman to the corporate media, it seems Ryan is largely succeeding.
He's been making the media swoon for months now, as the January 25 New York Times made clear:
New York Times columnist David Brooks (4/4/11) called Ryan's budget plan "the most comprehensive and most courageous budget reform proposal any of us have seen in our lifetimes.... The Ryan budget will not be enacted this year, but it will immediately reframe the domestic policy debate." Brooks went on to declare that "the Ryan budget will put all future arguments in the proper context," closing with this: "Paul Ryan has grasped reality with both hands. He’s forcing everybody else to do the same."
Even those who disagreed with Ryan's plan found ways to praise it. In Time (4/18/11), Fareed Zakaria wrote that "Ryan's plan is deeply flawed, but it is courageous." Zakaria adds that "Ryan makes magical assumptions about growth--and thus tax revenues," and that other aspects are "highly unrealistic." But still he concludes that he applauds it as "a serious effort to tackle entitlement programs."
And on NBC's Chris Matthews Show (4/10/11), pundit Gloria Borger declared:"We have to give Paul Ryan an awful lot of credit because, as all of our august colleagues have said, yes, it does define the conversation for 2012."
In a piece for Time.com, reporter Michael Grunwald (4/7/11) noted the incongruity of such praise and wondered, "What's so brave about fuzzy math in the service of Tea Party ideology"?
The Washington Post factcheck of the Ryan plan by Glenn Kessler (4/6/11)--the one cited in passing by Time--represented a genuine attempt to assess Ryan's proposal. When Ryan claims that the Congressional Budget Office (CBO) found his plan would produce surpluses by 2040, most outlets report it as fact--like the April 5 Los Angeles Times, which explained that Ryan's budget, according to the CBO, "would dramatically improve the nation's overall fiscal picture, reducing deficits projected in President Obama's budget and moving the federal government into surplus by 2040."
The Post's Kessler, however, reports that this claim "seriously overstates the case," since the CBO analysis "reflects the scenarios that Ryan has concocted. There are, for instance, no real revenue estimates, just an assumption that federal revenues will remain at about 19 percent of GDP." The spending cuts imagined by Ryan are equally implausible--a "bare-bones government...not experienced since before the Great Depression."
Kessler also noted that Ryan claims substantial savings--$1.4 trillion, in fact--from a repeal of the new healthcare law--without any explanation for why he rejects the CBO's determination that a repeal would actually cost hundreds of billions. The verdict was, as Time parenthetically noted, that Ryan's plan was based on "dubious assertions, questionable assumptions and fishy figures."
This illustrates one of the awkward ironies of corporate media "factcheck" articles. If the essential claims made by a politician are in fact wildly misleading, then it's not nearly enough for that to be said one time in one brief article. That assessment should be part of every single report on Ryan's budget, if journalists intend to do their job.

37 Comments so far
Show AllJournalists, like many Americans, are so enamoured of being allowed into the "big ring" that they shut off their brains and just jump on the bandwagon, whatever it is, as long as the hype is juicy. Clueless lemmings "informing" the rest of the clueless lemmings while so many are trapped by bankruptcy, poverty, homelessness, if not now, then it will be coming soon as the Tea Party has their way. The lies generated in this upside down world keep coming.
Am I having a bad day? Yes! Obama's Billion Dollar Campaign mailer is disgusting.
It has tax cuts-----for the rich----- these media shirkers think they are rich so of course they say what a plan!
FAIR does a good job identifying what a dwindling few Americans already know. Corporate media and their toadies--David Brooks, Zakaria, Borger and their ilk, have great difficulty assessing the culinary difference between chicken salad and chicken shit.
Janis Rose is right on target. The thing is though, the corporate world will not allow serious journalists to get into the bigtop circus tent. If one does sneak in, he or she won't last long. As many of us are observing, plutocracy is nasty business.
Lion Ryan, or lyin' Ryan?
Paul Ryan looks just like Eddie Munster.
http://freddyo.com/tag/eddie-munster/
Why let facts get in the way of the preposterous claims of our government and media?
"... moving the federal government into surplus by 2040."
2040? Oh we're so far down the crapper it doesn't really matter what we do within our current global free-market economic system. An economic plan predicting outcomes and stretching 30 years into the future isn't worth the paper it is written on. Pure fantasy, no matter what it says.
"How can both things be true?"
When your job is to obfuscate and confuse everything and anything can be true simultaneously.
"Facts" about proposed tax plans often depend very largely on assumptions. None of the materials coming out of Washington (or for that matter, any other political capital) are going to be free of spin, or bias. One of the most significant assumptions underlying any tax and revenue projection is the impact of taxes on taxable income. The Dems like to pretend it has no effect, that raising taxes does not induce people not to work, or to invest in tax-sheltered vehicles, etc.
History shows otherwise. See, e.g., Joint Economic Committee, U.S. Congress, "Report: The Reagan Tax Cuts: Lessons for Tax Reform" (April 1996), available at http://www.house.gov/jec/fiscal/tx-grwth/reagtxct/reagtxct.htm. An excerpt follows:
"The criticism that the tax payments of the rich would fall under ERTA was based on a static conception of human behavior. As a 1982 JEC study pointed out, similar across-the-board tax cuts had been implemented in the 1920s as the Mellon tax cuts, and in the 1960s as the Kennedy tax cuts. In both cases the reduction of high marginal tax rates actually increased tax payments by 'the rich,' also increasing their share of total individual income taxes paid. Unfortunately, estimates of [the Economic Recovery Tax Act (ERTA) of 1981] by the Democrat-controlled CBO continued to show falling tax payment by upper income taxpayers, even after actual IRS data had become available showing a surge of income tax payments by affluent taxpayers.
. . .
"High marginal tax rates discourage work effort, saving, and investment, and promote tax avoidance and tax evasion. A reduction in high marginal tax rates would boost long term economic growth, and reduce the attractiveness of tax shelters and other forms of tax avoidance. The economic benefits of ERTA were summarized by President Clinton's Council of Economic Advisers in 1994: 'It is undeniable that the sharp reduction in taxes in the early 1980s was a strong impetus to economic growth.' Unfortunately, the Council could not bring itself to acknowledge the counterproductive effects high marginal tax rates can have upon taxpayer behavior and tax avoidance activities.
"Since 1984 the JEC has provided factual information about the impact of the tax cuts of the 1980s. For example, for many years the JEC has published IRS data on federal tax payments of the top 1 percent, top 5 percent, top 10 percent, and other taxpayers. These data show that after the high marginal tax rates of 1981 were cut, tax payments and the share of the tax burden borne by the top 1 percent climbed sharply. For example, in 1981 the top 1 percent paid 17.6 percent of all personal income taxes, but by 1988 their share had jumped to 27.5 percent, a 10 percentage point increase."
Lies, damn lies and statistics.
... and straw men.
Even if this article's number are correct (which I doubt) it is still very damning. Look at it this way Kiely. In the late 1970's the top 1% of americans raked in between 6%-8% of total US incomes. By the late 80's the top 1% were raking in between 14% and 15% of total US incomes.
The report fails to mention that...that I could see. It's convenient to say that these people payed 10% more taxes when their total percentage of US incomes nearly doubled. For that rise in tax payments to mean anything equitable to their financial gains it would have had to nearly double also. SO, they doubled their money and payed 10% more in taxes. Not a bad deal....courtesy of the American Working Man.
Thanks momerath for correcting poor Horace. These days, even most right wingers do not anymore make the old, vapid arguments and trot out the misleading and very limited statistics that Horace did here. (I haven't seen Horaces' argument anywhere in many, many years.) The arguments are so old and discredited that you can see the cobwebs on them right on your monitor!
Right wingers of today are all about using the shock doctrine to ram through cuts against the middle class and poor. "If this isn't cut there will never be enough jobs" etc. etc.. And they are all about supporting big corporations that are "too big to fail" holding the economy and everyone in it hostage and investing whatever they do invest in China etc. and not in the US.
In other words right wingers are using brute psychological force rather than tired, discredited arguments to steal from the poor and middle class to give to the rich. The lies are based on various threats and scares and not on "facts" that with the help of the Internet can easily be proved to be false.
So Horace is not only wrong but he is also completely out of touch. He is using very tired and very outdated arguments that trendy right wingers don't use anymore.
The 1980s and 1990s supply a laboratory experiment for the impact of taxes on productivity; we haven't had a similar experiential referent since then. What is evident is that the left wing doodlebrains refuse to admit there is some truth the the Laffer curve notwithstanding the lessons of our recent history.
In the 1970's the Capitalist Media constantly told us that wages would rise with productivity, and that, in fact, the two were tied together. Check the stats, Horace, and tell us how that's working out for us! Hmmm?
In the 19th Century and before, human labor was the capital on which wealth depended. That's what Marx was looking at. In the 20th Century, as automatioin took hold machine labor gradually replaced human labor to a great extent although humans were required to operate the machines. Toward the end of the 20th Century and into our 21st Century, information is the new capital and even less human labor is required to make that engine run Any wonder the rust belt is rusting, Detroit is on its uppers, the shoe factories are on theirs as well, China can produce textiles and other labor-intensive goods far more cheaply than we can?
Union labor is no longer needed in the private sector (unionized workers are down to about 6% of the workforce) and the voters and taxpayers are rapidly concluding that public unions have to change or be deleted.
Wages have continued to rise with productivity. It's just that the people whose labor was once regarded as productive are no longer so regarded and the classic lunch-pail worker has been replaced with people who program and use computers and other devices that generate and receive electronic messages. They do get paid well in the main, but many fewer of them are needed.
The sea change we are witnessing is not unlike the movement in the United States from an agrarian economy to a manufacturing economy a century ago. It will be equally if not more dislocating and disturbing to those who suffer dislocation.
Does anyone really care what Time has to say about anything? If it gets any thinner each week it have only one side.
The MSM is so far in bed with the Washington mob what ever they say is bull crap.
The whole country seems to not understand that not raising the debt ceiling means to the US and the world.
Hell no, shut it down. Surprise, Surprise, the boys on Wall Street are in a panic about this happening and they don't even understand they have funded these idiots.
It's pass time to find a new country to move to.
this man is a member of the corrupt body running this country...
he is corrupt...his plan is corrupt...his cronies are corrupt...
everything they touch is corrupt...
why believe a word?
as to FAIR, intrepid reporting is deadly tothe intrepid reporter...
one shouldn't expect such sacrifices...
the media isn't there to inform, it is there to misinform...
stop listening...
Anything that resembles a sensible socialism, we should be proud of, these dark ideologues that have no respect for our country and its people, hate. So what, they are not in power, let them hate it and to hell with them. The sooner we phase out the rich and corporations the better for all society, humanity, and the world.
Young (R)s are being thrown to the wolves for the greater good of their party.
The rich & powerful love Obama. The (R) budget is like the opposing team's quarterback intentionally throwing an interception to give their adversary the win. Obama cannot help but score big time running against the Draconian (R) budget. It makes Obama's sellout look like the better of two evils.
Shameless Obama has done more for the rich and powerful that any (R) could ever imagine accomplishing. Obama lifted the twenty year drilling ban, thirty year nuclear power moratorium, did not bring home the troops but sent more, did not close Guantanamo, kept the Bush tax cuts intact, started chipping away at SS with the "payroll tax holiday', no cuts to defense, did not get any of our constitutional rights back, started another war in the ME, etc . . .
Obama has delivered where no (R) could have. It is four more years of Obama. The Koch brothers will be part of Obama's record one billion dollar campaign. Obama is the biggest beneficiary of Citizens United to date. He does not need us little people anymore. Where ya gonna go?
It will be great political theater to watch this known liar shuck and jive his way to another four years. What will he promise this time? Maybe he will run on making the wealthy pay their fair share of taxes. That is what he ran on in the 2010 election cycle, just three weeks before extending the Bush tax cuts. Won't that be rich? I cannot wait to see Obama pull that old trick on us again. He is responsible!
Nope. Obama has nothing to brag about, so he will use the tried-and-true "I am just getting started, but I need another 4 years to really shine! The darned "opposition" (whoever the hell that is) keeps putting up roadblocks to my Hope and Change (tm) dreams for all Americans. It's been rough, and uphill, but I won't back down, I need your support!" blah blah blah.
Translation:I haven't done shit these last 4 years except move further and further to the right, bend over for my corporate masters, shaft the working people, and sink the country further into 3rd-world fascist status, but you will all vote for me anyway, because I'm "better than a Republican. (somehow)"
Obama was elected by the women (the men went pretty convincingly for McCain). Does that suggest we should revisit the nineteenth amendment?
This guy looks so simple-minded and stupid.
Try some smart-pills.
Uhh, they taste like rabbit turds.
Now you're getting smart.
He will be running for president in 2016. While I cannot really make good on my promise, I still guarantee it. He has the look of a Red Kennedy
Serious, bold, courageous, starting point.
Have you noticed that you keep hearing these words over and over again regarding the Paul Ryan budget proposal. You can be sure that when the same buzz words start popping up over and over again from the beltway media and pundit crowd they're not just reporting the news. They're a part of a marketing campaign. The reporting you hear is much more Madison Avenue than Washington D.C. and the reference to Paul Ryan as a young rising star and intellectual is rooted in the same kind of PR campaign.
If you examine the budget thoroughly it turns out that it's the same old Republican dross that does not take the deficit seriously and furthers the Republican right wing agenda of dismantling the programs of the New Deal and the great society. It's numbers don't add up and it's not even new.
This is the kind of sick reporting that passes for news today. It's reporting that has more in common with Don Draper and his creative team than real news gathering by bold, serious, courageous and serious news reporters.
This guy looks like he would be quite comfortable in an SS uniform... typical fascist toadie - the people of Wisconsin will regret jumping on the neo-Nazi bandwagon (just like the people of Germany did).
ohh Ryan..when I look into your dreamy blue eyes, I totally forget that your are a lying fundie sociopath!
Lets do something romantic and go kick some homeless people in the balls!
I don't see Ryan as courageous for putting forth his budget. I don't plan on giving him credit for anything but being a humongous coward. It is so much easier to put forth a budget on the backs of the neediest of us than it is to demand an end to the tax cuts for the wealthy. After all, the neediest have the most trouble fighting back.
Paul Ryan does not deserve my respect or consideration. He deserves my contempt.
Ryan wants a lot of Americans to go without health care their whole lives including when they are over 65 instead of just most of their lives. He's also a fan of Americans being homeless and dumpster diving and so forth.
FAIR sez: "In Time magazine (4/18/11), readers learned that Paul Ryan (is) described as having 'jet black hair and a touch of Eagle Scout to him'" ...
***
Wonder if that's the same author who so enjoyed Bush's aircraft carrier codpiece?
LOL,Goebbels sez
Ockham's Razor: The simpilest explaination being the best.
A list of budget cuts in simple language in one liners needs to be presented to the MEDIA so that the MEDIA can accually read it ( if they can read) and understand how America is getting screwed. But then it all depends on who is pulling their strings or paying them.
I heard Rachel Maddow at MSNBC say yesterday that "Ryan is cute and has dreamy blue eyes."
My estimation of Maddow's brain plunged to rock bottom. Why is the ordinary American so sexually attracted to evil humans to vote for them and elect them to be Presidents or to Congress? If normally intellectual Maddow can feel such perverse libido for American redneck vampires, then can one blame the dumbed down folk having multiple orgasms, especially on election day in anticipation for the economic rape Ryan will deliver?
I find it hilarious that all you left-wing n'er-do-wells resent and are even contemptuous of Paul Ryan for having threatened your closed-circuit echo chamber by putting forth ideas that challenge your pet idées fixes.
As long as there have been countries/societies economies have never been purely private but have always been a mix of private and governmental even if "governmental" only meant spending on things military. Hence governments of industrially developed countries today are big job providers who must collect taxes and duties to pay for these jobs.
Perhaps there was a time when kings paid only for horses, mail, bows, arrows, muskets, ammunition, and fortifications and nothing else. It appears that the republicans of today want to take us back to such times.
And let us not forget that Pretty Boy Ryan has his medical situation rather adequately covered by what the House has generously given themselves.
And besides he will get his pension even if he loses the next election for ever or we get smart enough to boot out this very dangerous charlatan as we in PA did extremist nut case Ricky Santorum.