Why?
The Ryan plan assumes 4++% annual growth in order to meet its debt-reduction targets. But the historical record of growth in the US simply does not support 4++%. It supports 3% reasonably well, and 2.5% very well, indeed.
But if you want Debt/GDP back at the 2010 levels, the Ryan plan is inadequate. Period.
HT: AOSHQ
1 comment:
Ron Paul does better than Ryan when it comes to the budget.
Ron Paul Proposes Elimination of 5 Federal Departments
http://www.thirdage.com/news/ron-paul-proposes-elimination-of-5-federal-departments_10-20-2011
Ron Paul unveiled his economic plan in Las Vegas Monday, proposing an arrangement that would slash $1 trillion from the federal budget during his first term. According to ABC News, Paul’s plan would also eliminate five cabinet departments and gut funding to most others. He says such an action will produce a budget surplus by 2015.
“I am absolutely convinced this is the only way to prosperity,” Paul said. “If we want jobs we have to get the government out of our way.”
The departments Paul would eliminate include the departments of Energy, Education, Housing and Urban Development, and Commerce and Interior. The 134,000 federal employees who would lose their jobs would be transferred to other departments until they retired. Doing so would save about $179 billion from the federal budget, ABC reported.
As for other departments, Paul would cut funding by 40 percent in the Food and Drug Administration and by 30 percent for the Environmental Protection Agency. The Department of Defense would lose $832 billion during Paul’s first term in office, most of which would be saved from his plan to end all foreign wars and foreign aid.
“I would say it’s an economic growth plan and an avoiding of disaster plan,” Chris Edwards of DownsizingGovernment.org told ABC. “I don’t think the government is very good at creating jobs, so I don’t think that should be the focus of federal policy.”
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