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Paul Krugman: Conservative Fantasies, Colliding With Reality

Summary:
Talk is cheap: Conservative Fantasies, Colliding With Reality, by Paul Krugman, NY Times: This week the Trump administration put out a budget blueprint — or more accurately, a “budget” blueprint. After all, real budgets detail where the money comes from and where it goes; this proclamation covers only around a third of federal spending, while saying nothing about revenues or projected deficits. ... So what’s the point of the document? The administration presumably hopes that it will distract the public and the press from the ongoing debacle over health care. But it probably won’t. And in any case, this pseudo-budget embodies the same combination of meanspiritedness and fiscal fantasy that has turned the Republican effort to replace Obamacare into a train wreck. Think ... about the vision of government ... that the right has been peddling for decades. In this vision, much if not most government spending is a complete waste, doing nobody any good. The same is true of government regulations. And to the extent ... spending does help anyone, it’s Those People — lazy, undeserving types who just so happen to be a bit, well, darker than Real Americans. This was the kind of thinking — or, perhaps, “thinking” — that underlay President Trump’s promise to replace Obamacare with something “far less expensive and far better.

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Talk is cheap:

Conservative Fantasies, Colliding With Reality, by Paul Krugman, NY Times: This week the Trump administration put out a budget blueprint — or more accurately, a “budget” blueprint. After all, real budgets detail where the money comes from and where it goes; this proclamation covers only around a third of federal spending, while saying nothing about revenues or projected deficits. ...
So what’s the point of the document? The administration presumably hopes that it will distract the public and the press from the ongoing debacle over health care. But it probably won’t. And in any case, this pseudo-budget embodies the same combination of meanspiritedness and fiscal fantasy that has turned the Republican effort to replace Obamacare into a train wreck.
Think ... about the vision of government ... that the right has been peddling for decades.
In this vision, much if not most government spending is a complete waste, doing nobody any good. The same is true of government regulations. And to the extent ... spending does help anyone, it’s Those People — lazy, undeserving types who just so happen to be a bit, well, darker than Real Americans.
This was the kind of thinking — or, perhaps, “thinking” — that underlay President Trump’s promise to replace Obamacare with something “far less expensive and far better.” After all, it’s a government program, so he assumed that it must be full of waste that a tough leader like him could eliminate.
Strange to say, however, Republicans turn out to have no ideas about how to make the program cheaper other than eliminating health insurance for 24 million people (and making coverage worse, with higher out-of-pocket spending, for those who remain).
And basically the same story applies at a broader level. Consider federal spending...: Outside defense it’s dominated by Social Security, Medicare and Medicaid — all programs that are crucial to tens of millions of Americans, many of them the white working-class voters who are the core of Trump support. Furthermore, most other government spending also serves purposes that are popular, important or (usually) both.
Given this reality..., what will happen if anti-big-government politicians ... put their agenda into practice? Voters will quickly get a lesson in what slashing spending really means — and they won’t be happy.
That’s basically the wall Obamacare repeal has just smashed into. ...
Republicans’ budget promises, like their health care promises, have been based on an essentially fraudulent picture of what’s really going on. And now the bill for these lies is coming due.
Mark Thoma
Mark Allen Thoma (born December 15, 1956) is a macroeconomist and econometrician and a Professor of Economics at the Department of Economics of the University of Oregon. Thoma is best known as a regular columnist for The Fiscal Times through his blog "Economist's View", which Paul Krugman called "the best place by far to keep up with the latest in economic discourse", and as an analyst at CBS MoneyWatch. He is also a regular contributor to EconoMonitor.

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