Obama on the Path to Ruin

Fiscal Obamaism is not just a temporary, Keynesian, countercyclical spike in spending; it is deficits to infinity and beyond. "It is the interest that kills you," Ryan says. In a few weeks, he expects the CBO to report that, in the 10th year of Obama's budget, the federal government will "spend nearly a trillion dollars a year, just on interest! This traps us as a country. Inflation will wipe out savings and hurt people on fixed incomes. A plunging dollar will make goods more expensive. High tax rates will undermine economic growth. It is the path of national decline."

But unlike other deficit hawks, Ryan courageously -- some would say foolhardily -- presents his own alternative. His budget road map offers many proposals, but one big vision. Over time, Ryan concentrates government spending on the poor through means-tested programs, patching holes in the safety net while making entitlements more sustainable. He saves money by providing the middle class with defined-contribution benefits -- private retirement accounts and health vouchers -- that are more portable but less generous in the long run. And he expects a growing economy, liberated from debt and inflation, to provide more real gains for middle-class citizens than they lose from lower government benefits.

Ryanism is not only a technical solution to endless deficits; it represents an alternative political philosophy. For decades, culminating in the Obama health reform proposal, Democrats have attempted to build a political constituency for the welfare state by expanding its provisions to larger and larger portions of the middle class. Ryan proposes a federal system that focuses on helping the poor, while encouraging the middle class to take more personal responsibility in a dynamic economy. It is the appeal of security vs. the appeal of independence and enterprise.

Both sides of this debate make serious arguments, rooted in differing visions of justice and freedom. But the advocates of security, including Obama, have a serious problem: They are currently on a path to economic ruin.

In his Kemp-like way, Ryan manages to find a bright side. "The way I look at it, we were sleepwalking down this path anyway. The Democratic overreach woke people up. It was a splash of cold water in the face of every voter. Now we have a new, more serious conversation. And I'm not going to back down."