Representative Ryan has an earnest look and good hair but what do economists think of his ideas? Some famous economists have cheered for sharp cuts because they argue that the deficit crowds out private investment and creates uncertainty about the risk of future hyper-inflation.
I am not sure what I think. Dr. Zasloff raises some excellent points related to the costs of war and the last round of Bush tax cuts.
One “deep” thought. As life expectancy continues to rise and as medicine continues to make discoveries that generate new costly pills for us to take, who pays for the increased Social Security, Medicaid and Medicare expenses? Without knowing the details (yet) of Ryan’s plan, I like the idea of keeping those 55 and up “whole” and changing the rules of the game for those under age 55. I agree that this is a sharp discontinuity and it poses challenges for those in their early 50s. But, for those in their 20s and 30s, this new “rules of the game” would allow them to plan out their life-cycle choices.