Tuesday, April 5, 2011

Paul Ryan (R) Unveils "Path to Prosperity" Budget Plan

Video embedded below.

You can read the whole 72 page budget for yourself at http://www.politico.com/static/PPM170_1100405_plantoprosperity.html.

Here are some visualizations to help you compare Obama's budget and Ryan's budget.

Picture embedded below.

"According to the new numbers released today, Congressman Ryan’s budget plan will result in government growing, on average, by almost 2.8 percent annually over the next 10 years.

President Obama’s budget plan, by contrast, would increase the burden of government spending by an average of nearly 4.7 percent each year.

This chart compares the two budget plans. Because Chairman Ryan does not let spending grow as rapidly, cumulative spending over that period will be $6.2 billion less than it would be based on the President’s plan. That’s an impressive amount of money that taxpayers will save if Ryan is successful, but it’s not a spending cut.

To make things a bit more stark.

Picture embedded below.


"The gray line is where we were at the end of September 2010 ==> that's our target. The blue line is the Obama administration's baseline budget. As you can see, it sails off into the stratosphere. This is the budget plan the Democrats are defending.

The teal line and red line are the Deficit Commission and Ryan's plan, respectively. The teal line makes it back to the gray line by the end of 2022. Ryan's plan? Well, you'll have to wait another 10 years.**

So here's the bottom line. If you believe that the GDP will start growing at a healthy rate and continue at that rate forever, and if you manage to reform Medicare, Medicaid, and Social Security, and if you reform the budget process, and if you reform the tax code, and if you accomplish all these reforms in FY12, then you might be able to pay off this year's spending within 11 to 12 years. Or maybe the decade after.

This is what the President and his crackerjack economic team have wrought. A one-year deficit that is so large that it can only be paid back if everything goes exactly right. And if everything goes exactly right, we're still looking at decades before we can get back to the debt level we had only 6 months ago.

Bottom line; base on what I have seen so far Ryan's budget is much more preferable then Obama's. In the uproar that is sure to follow with the Democrats calling Ryan's budget 'extreme cuts' it is important to remember that Ryan's budget does not actually cut the budget. What is does is propose that government spending growth slow down. That is to say that the government will still spend more money next year then it did last year, but not as much more as Obama wants to spend.

No comments:

Post a Comment

Related Posts with Thumbnails

Like what you read; Subscribe/Fan/Follow