By Arnold Kling
Members of the Senate Tea Party Caucus on Thursday announed a plan to balance the budget in five years, cutting spending by nearly $11 trillion compared to President Obama’s budget.
The plan was proposed by Senators DeMint, Lee and Paul.
The lawmakers said they would turn Medicare into a premium support plan that would give seniors the same healthcare plan as members of Congress. They say this would save an estimated $1 trillion over 10 years.
…The trio would curb Social Security spending by increasing the retirement age over time and indexing benefits to individual incomes. High-income earners would see slower growth in their benefits while low-income workers would see increased benefits.
…It would freeze foreign aid spending at $5 billion a year and eliminate the departments of Commerce, Education, Housing and Urban Development and Energy and privatize the Transportation Security Administration.
Now, that’s what I call austerity.
In a better world, theirs would be the baseline budget, rather than a budget under which the government goes broke whenever bond investors decide they can no longer have confidence in getting repaid.