The Political Challenge of the Moment

The great political challenge of the moment is how to update the 20th century entitlement state so that it is affordable. This challenge manifests itself in two main forms. The primary problem is the cost, or growth in cost, of health care in our country. The second problem is the current excess of spending over and above revenue in both discretionary and non discretionary spending.

Republican's like to say that "this country has a spending problem." In actuality, this country has a revenue and a spending problem, and addressing one without the other offers an overly simple and incomplete solution to this challenge.

In the recent past, both Mr. Ryan and President Obama have offered largely partisan proposals on how to solve this challenge. They are both drastically lacking in a comprehensive solution to this challenge. Mr Ryan health care proposals are incomplete and the rest of his budget is laughable in bad assumptions. Mr. Obama's health care proposal is enlarged government largesse, and the rest of his budget depends on politically favorable tax hikes which will result in sub optimum outcomes.

Mr. Ryan's health care proposal is to increase competition by giving "consumers" more control.