Krugman on "The Budget Speech": "Much better than many of us feared"

[jefferson_dem]

The Budget Speech

Style: I liked the way Obama made a case for government at the beginning. I liked the way he accused Republicans of pessimism, of abandoning a hopeful vision of America. Good that he went after the Ryan plan — and good that he went after the cruelty of that plan. If you ask me, too many percentages. Oh, and whichever speechwriter came up with “win the future” should be sent to count yurts in Outer Mongolia.

Substance: Much better than many of us feared. Hardly any Bowles-Simpson — yay!

The actual plan relies on some discretionary spending cuts, this time including defense — good, although I think too much is being cut from domestic spending. It relies on letting the Bush tax cuts for the rich expire — finally! — plus unspecified reductions in tax expenditures.

The main thing, though, is the strengthened role of and target for the Independent Payment Advisory Board. This can sound like hocus-pocus — but it’s not.

As I understand it, it would force the board to come up with ways to put Medicare on what amounts to a budget — growing no faster than GDP + 0.5 — and would force Congress to specifically overrule those proposed savings. That’s what cost-control looks like! You have people who actually know about health care and health costs setting priorities for spending, within a budget; in effect, you have an institutional setup which forces Medicare to find ways to say no.

And when people start screaming about death panels again, remember: you can always buy whatever health care you want; the question is what taxpayers should pay for. And compare this with a voucher system, in which you have insurance company executives, rather than health-care professionals, deciding which care won’t be paid for.

Overall, way better than the rumors and trial balloons. I can live with this. And whatever the pundits may say, it was much, much more serious than the Ryan “plan”.

Update: I should probably say, I could live with this as an end result. If this becomes the left pole, and the center is halfway between this and Ryan, then no — better to pursue the zero option of just doing nothing and letting the Bush tax cuts as a whole expire.

http://krugman.blogs.nytimes.com/2011/04/13/the-budget-speech/?smid=tw-NytimesKrugman&seid=auto

[vaberella]

1. Obama has already cut defense spending since he's President.

How is this a finally?

[druidity33]

3. He cut programs...

Defense spending went up this year.

:shrug:

[ProudDad]

15. No he has not!

He has consistently raised the war budget...

Check your facts...

They have pulled the wool over your eyes by "budgeting for" a "slower rate of growth" of the war budget (by a fraction of a percentage point) is a "cut"...

[harun]

18. No he hasn't.

[Tippy]

2. K&R

[phantom power]

4. "If this becomes the left pole, and the center is halfway between this and Ryan, then no"

The rub is, that's exactly how all the previous negotiations have gone.

[Peace Patriot]

9. Yup! And I'm so glad he edited to add this VERY IMPORTANT point. nt

[pscot]

13. +1

[ProudDad]

16. Actually the new center will be

about 90% of the way to Ryan...

If the past is any judge...

[slay]

5. The same thing has been said about 3 Mile Island

"much better than many of us feared". it's all relative. words mean nothing - especially when they come from Obama - the man who promised to shut down Gitmo. you'll have to forgive me if it just plain don't believe his crap anymore. :eyes:

[GameOn]

6. Paul needs to smoke some weed and chill. He's too tense. NT

[krawhitham]

7. does Krugman do anything but blogging

I mean really, he blogs responses to stuff 24 hours a day 7 days a week 365 days a year

Does he have a job, does he sleep, is Krugman more than one person?

[Peace Patriot]

8. LOL! You want people who take vacations from vitally important matters like the budget

and like economic policy in the post-Bush-induced-Great Crash era? You want people who don't take this vital matter seriously and don't dedicate themselves with passionate commitment to good economic policy that benefits all?

Try your congress critter.

[Pirate Smile]

10. He has added another update (if you have time, you may want to add it to the OP).

Update update: I don’t want to step too much on the administration’s selling point, but progressives upset by the claim that there are three dollars of spending cuts for every dollar of tax increases should be aware that there’s a bit of creative labeling going on. As I understand it, they’re counting both interest savings and reductions in “tax expenditures” — subsidies through the tax code — as spending cuts. It’s a much more balanced plan if you look at the balance between revenue increases and non-interest outlays.

[MercuryRepeater]

11. is the President still missing, Paul??

[ProSense]

12. More Krugman:

here

[cottonseed]

14. I stand with Paul.

[ProudDad]

17. But only when he supports your fantasy

that the corporate-funded White House and Congress actually give a shit about what you think and need...

[uponit7771]

19. Krugman has some integrity