Ryan should be commended for refusing to be passive in the face of spending trends that threaten to swamp the nation's economy. More important, Ryan's budget, like his 2010 " Road Map For America's Future" (from which much in the budget is inspired), is a serious attempt to think through the implications of the past decade's wild spending spree, in which federal outlays increased by more than 60 percent in real terms and debt held by the public exploded from 36 percent of GDP in 2007 to its current 62 percent level. Lower levels of government spending and debt and taxes leaves more money in the hands of private citizens and businesses, who are far more likely to generate economic growth. So the amount of borrowing built into Ryan's plan is less too. Ryan's plan also calls for less revenue (taxes) than the president's and posits a significantly smaller set of annual deficits. As the chart above shows, Obama expects to spend almost $6 trillion by 2021, while Ryan's plan comes in at more than a trillion dollars less, around $4.7 trillon (these amounts are in nominal dollars). Ryan's budget spends considerably less money over the next decade than does Obama's. We made the case against Obama's budget here. Now, we discuss the good, the bad, and the ugly of Ryan's budget. Ryan's budget is indeed a positive break from past efforts by Republicans and Democrats alike, but it doesn't provide the solutions the American people deserve. Bush and has proceeded unabated since then. Neither budget provides a good way forward for a country still battling the effects of recession and the non-stop, self-inflicted spending binge that began with George W. Unfortunately for taxpayers and citizens, Ryan's plan looks better when standing in the shadow of Obama's. So compared to such an exercise in recklessness, Ryan's plan is refreshingly engaged with reality. And that's if things go according to his plan, which they won't (built into his budget are unrealistic assumptions about the rate of economic growth, revenue collection, health care savings, and more). Obama's dream budget would mean a 2021 budget that spends $2 trillion more than we do today, increase debt held by the public from 62 percent to 77 percent of Gross Domestic Product (GDP) and maintain massive annual deficits.
Indeed, Obama's plan for 2012 is so awful that it should make us feel lucky that he and the Democrats failed to pass a budget for the current fiscal year (the only time such a thing has happened since 1974). It compares extremely favorably to President Barack Obama's own plan, but that is damnably faint praise.įrom every possible perspective, Obama's budget was and is a disaster waiting to happen, memorable only for reminding all Americans that you can't spell " Winning the Future" without WTF. Paul Ryan (R-Wis.) has released the official House Republican proposal for the 2012 federal budget.
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