The liberal reaction to Paul Ryan’s budget plan makes it evident that liberals are more terrified than they’ve been since Jack Kemp (one of Ryan’s mentors) advanced supply-side economics back in the late 1970s. And although Ryan may not run for president next year, it is clear that just as Ronald Reagan had to embrace the Kemp-Roth tax-cut plan in his 1980 campaign, the eventual GOP nominee will have to embrace Ryan’s budget plan if he or she is going to be taken seriously by the party, and especially the Tea Party.
As Kemp’s understanding of supply-side economics was about more than just tax rates and revenues, Ryan’s budget architecture is about much more than just fiscal balances, and this is what terrifies liberals the most. The most interesting twist on the whole matter, though, is whether Ryan’s plan would eviscerate the welfare state (cue Nancy Pelosi, et al.), or rescue it within reasonable limits.