Would any Republican ever say that we must raise taxes to create jobs? Of course not. Yet by pretending that candidates can avoid talking about entitlement reform, some Republicans are essentially arguing just that.
The Examiner‘s Byron York reports today that some Republicans are worried that a Rep. Paul Ryan, R-Wis., presidential run would create a “schism” between Republicans who want to focus on “jobs, jobs, jobs” and Republicans, like Ryan, who have championed reduced government spending through entitlement reform. This is a false choice.
Any conservative candidate will tell you that among the top policy priorities for job creation is low taxes. Texas Gov. Rick Perry sure is talking up the role his state’s low taxes played in his state’s strong job creation record. But those low taxes are only sustainable as long as entitlement spending is kept low. That is why Perry fought so hard for flexibility in the state’s Medicaid program.
The exact same is true, only more so, at the federal level. The only way our current tax rates, let alone lower ones, can be sustainable is if government spending is reduced. And the only way to reduce government spending is to reform entitlement programs, Medicare being the big spending league leader.
The mere possibility that this fact isn’t already thoroughly ingrained into every Republican’s brain is exactly why so many conservatives are pushing for Ryan to run.
Around the Bigs
The Wall Street Journal, Economy Sinks Markets: Increased new claims for unemployment benefits along with declining home sales and manufacturing data drove the Dow Jones Industrial Average 419.63 points Thursday. The Dow is down 9.5% for August.
AFP, US bond yields hit record low on recession fears: US Treasury bond yields plunged Thursday, as worries about a new recession in the United States and Europe sent stock markets lower.
The New York Times, Number of Green Jobs Fails to Live Up to Promises: Federal and state efforts to stimulate creation of green jobs have largely failed, government records show. A recent Brookings Institution study found that green jobs currently account for just 2 percent of employment nationwide and that that number is falling as green job growth trails job growth in other sectors.
The Hill, Republican supercommittee member vows no cuts to entitlement benefits: House Energy and Commerce Committee Chairman Fred Upton, R-Mich., reassured constituents at a town-hall Thursday that Republicans would not cut benefits for current Medicare enrollees. “It’s awfully hard to tell someone … who might be 82, that they’ve gotta go back to work, because their benefits are gonna be chopped. That’s not gonna happen. We’re not gonna allow that to happen.”
The New York Times, Fewer Youths to Be Deported in New Policy: The Obama administration announced Thursday it will no longer deport illegal immigrants who graduate from high school. There is no new legislation authorizing this mini-amnesty, but immigration officials insist Obama has the authority to implement the new program as “prosecutorial discretion.”
National Journal, Memo to the GOP: Independent Voters Are Required to Win the General Election: National Journal’s Charlie Cook says, “this election is the Republican Party’s to lose” but they “run a high risk of losing” if they don’t pick “someone who might win a majority of the independent votes.”
The Washington Post, McDonnell announces $544.8 million budget surplus: Gov. Bob McDonnell announced Thursday that Virginia finished the fiscal year with a $544.8 million surplus. The Republican will put the bulk of the money in the state’s rainy day fund.
Campaign 2012
Perry: At the visible prompting of his mother, a young boy asked Texas Gov. Rick Perry how old the earth was yesterday in New Hampshire. Perry responded, “How old do I think the earth is? You know what, I don’t have any idea.” After the mom loudly whispered to the child to ask Perry why he doesn’t believe in science, Perry responded: “Here your mom was asking about evolution, and you know it’s a theory that’s out there, and it’s got some gaps in it. In Texas we teach both creationsim and evolution in our public schools. Because I figure you’re smart enough to figure out which one is right.”
Righty Playbook
The Corner‘s Andrew Stiles posts video of House Minority Leader Nancy Pelosi at a town-hall across the Bay from her district in Oakland, defending the debt limit deal in Congress. The audience appears to wish Pelosi had shut the government down in order to force higher taxes on the rich. “Taxes save lives,” one audience member says.
Conservative Home readers write in to explain why they want to see House Budget Committee Chairman Paul Ryan, R-Wis., run for president.
Reuters James Pethokoukis reports that Obama’s reelection campaign is now facing what his economic team thought was the worst-case scenario.
Lefty Playbook
Firedoglake‘s David Dayen reports that despite previously declaring “independence” labor unions are guaranteed to fall in line with Democrats in 2012: “It’s clear that a lot of the leadership still thinks in terms of partisan warfare. As such, they are not respected by the Democratic leadership to the degree they could be.”
Rick Perlstein, author of Nixonland, says that Obama can win reelection by defending Medicare.
Michael Tomasky says Rick Perry makes President Bush look deeply informed.
