As argued in an article in The Economist, Paul Ryan’s proposal to fund
programs like Medicaid by a system of block grants to states would have the
effect, over time, of reducing federal support for these programs compared to
the present system. States hit hard by
the recession would have difficulty making up the difference and would likely
respond by increased taxes, budget cuts or cutting back on the number of
Medicaid recipients. This closely mimics
the situation in Europe where austerity measures have further weakened the
economies of countries that were already in trouble and threaten the European
economy as a whole. The present role of
the federal government in transferring funds from richer to poorer regions in
the US helps to smooth out these regional differences. The Ryan budget would do the opposite and, in
effect, Europeanize our economy.
The Ryan budget plan
Is thought to be American
But its effects will shore up
Trends that make us Europe.
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