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Pawlenty's In

12:44 PM, May 23, 2011 • By DANIEL HALPER
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Tomorrow, I'm going to Florida to tell both young people and seniors the truth that our entitlement programs are on an unsustainable path and that inaction is no longer an option.

Our national debt, combined with Obamacare, have placed Social Security, Medicare, and Medicaid in real peril. I'll tell young people the truth that over time and for them only, we're going to gradually raise their Social Security retirement age. 

And, I'll also tell the truth to wealthy seniors that we will means test Social Security's annual cost-of-living adjustment.

Medicare must be also be reformed with "pay for performance" incentives that reward good doctors and wise consumers.

And, we need to block grant Medicaid to the states. There, innovative reformers closest to the patients can solve problems and save money.

This week, I'll also be in Washington, D.C., to remind the federal bureaucracy that government exists to serve its citizens, not its employees.  The truth is, people getting paid by the taxpayers shouldn't get a better deal than the taxpayers themselves.

That means freezing federal salaries, transitioning federal employee benefits, and downsizing the federal workforce as it retires.   It means paying public employees for results, not just seniority - from the Capitol to the classroom, and everywhere in between.

And in the private sector, it means no card check - not now, not ever.  It means no more taxpayer bailouts just because you gave lots of money to a campaign.  And it especially means the National Labor Relations Board will never again tell an American company where it can and can't do business.

I'm here today to tell Iowans the truth, too.

America is facing a crushing debt crisis the likes of which we've never seen before.  We need to cut spending, and we need to cut it…big time. The hard truth is that there are no longer any sacred programs.

The truth about federal energy subsidies, including federal subsidies for ethanol, is that they have to be phased out.  We need to do it gradually.  We need to do it fairly.  But we need to do it.  

Now, I'm not some out-of-touch politician.  I served two terms as Governor of an ag state.  I fully understand and respect the critical role farming plays in our economy and our society.  I've strongly supported ethanol in various ways over the years, and I still believe in the promise of renewable fuels - both for our economy and our national security.

But even in Minnesota, when faced with fiscal challenges, we reduced ethanol subsidies.  That's where we are now in Washington, but on a much, much larger scale.

It's not only ethanol.  We need to change our approach to subsidies in all industries. 

It can't be done overnight.  The industry has made large investments, and it wouldn't be fair to pull the rug out from under it immediately.  But we must face the truth that if we want to invite more competition, more investment, and more innovation into an industry - we need to get government out.  We also need the government out of the business of handing out favors and special deals.  The free market, not freebies from politicians, should decide a company's success.  So, as part of a larger reform, we need to phase out subsidies across all sources of energy and all industries, including ethanol.  We simply can't afford them anymore.

Some people will be upset by what I'm saying.

Conventional wisdom says you can't talk about ethanol in Iowa or Social Security in Florida or financial reform on Wall Street.

But someone has to say it.  Someone has to finally stand up and level with the American people.  Someone has to lead.

When times get tough, there's always a temptation among politicians to try to turn the American people against one-another.  Some try to fan the flames of envy and resentment as a way to deflect attention from their own responsibilities. 

But that's not good enough.  Our problems demand - and our children deserve - much more from us this time.

No president deserves to win an election by dividing the American people - picking winners and losers, protecting his own party's spending and cutting only the other guys'; pitting classes, and ethnicities, and generations against each other. 

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