Monday, May 02, 2011

To Work, Ryan's Reforms Need Process Constraints | Jagadeesh Gokhale | Cato Institute: Commentary

To Work, Ryan's Reforms Need Process Constraints | Jagadeesh Gokhale | Cato Institute: Commentary: "The Ryan or other similar budget proposals won't be sustained for long without constraints on the budget process to stabilize fiscal policy, and which provide the best environment for rapid economic growth. Historical precedent shows that reforms stick when they are combined with changes in infrastructure — even in just administrative mechanisms. Base closings and welfare reforms of the 1990s stuck because the former involved removal of infrastructure, and the latter changes in administrative mechanisms at the state level; both costly to reverse.

In contrast, reforms such as the TRA-1986 and the BEA-1990 involved legal constraints which were easily modified or reversed. TRA-1986 suffered death by a thousand cuts, and BEA-1990's constraints were simply not renewed. The other, more difficult, way is to combine reform measures with a procedural impediment to reversal by future Congresses. One example is the Senate's Byrd Rule which prevents budget legislation from including changes to Social Security through a simple point of order raised by a single senator, and cannot be overturned without a supermajority in the Senate."

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