Ryan warns that if we don’t deal with our fiscal problems, we’ll have to raise taxes and cut benefits for seniors. So what can we do to reduce the deficit? Well, government spending is dominated by the big 5: Social Security, Medicare, Medicaid, defense, and interest payments; you can’t make a significant dent in the deficit without either raising taxes or cutting those big 5. Defense is untouchable, says the GOP; so that leaves the entitlement programs. And 2.7 of the three entitlement programs are benefits to seniors (70 percent of Medicaid spending goes on seniors).
So let’s see: to avoid cuts in benefits to seniors, we must … cut benefits to seniors.
I’m reasonably sure that Ryan hasn’t thought any of this through.
Paul Krugman hedging like Lehman on that “reasonably.”