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National Debt

Paul Ryan's Courageous Proposal

  • April 07, 2011

    This week House Budget Chairman Paul Ryan (R-WI) unveiled a courageous proposal to tackle our current budget woes. In his proposal, he seeks to bring government spending down to the 40 year average of 20 percent of GDP and includes cuts to current government spending by $6.2 trillion compared with President Obama's budget. Furthermore, Ryan’s plan would bring non-security discretionary spending to below 2008 levels. These are pre-stimulus, pre-bailout, and pre-Obama spending levels. In addition, this plan targets Obamacare for elimination; thereby halting tax increases of over $800 billion. The effects on the government as we know it will be large. Proposed in the budget is a 10 percent reduction to the federal workforce over the next three years. It also includes $120 trillion in debt reduction measures by 2050, relative to Obama's budget.
     
    Not only would the government be leaner, and more accountable, the economy will grow as well. Ryan's budget helps create 1 million private-sector jobs over the next year which would lead to a projected 4 percent unemployment rate by 2015. This would result in $1.5 trillion of projected growth in real GDP over the next decade. We can also expect an estimated $1.1 trillion increase in wages over 10 years, yielding an average increase in income of $1,000 per year for each American family.
     
    This budget shifts the budget conversation from the "billions to the trillions" as Chairman Ryan noted. This is the real conversation that needs to be taking place in Washington. No other legislator has been so bold as to propose a budget that goes so far to solve the woes of our nation's finances. Our country faces a budget Armageddon if we fail to act. No longer can our Members of Congress kick the can down the road when it comes to making the tough decisions about spending and borrowing. Voters went to the polls in a significant way this past November to tell their representatives to get our finances in order. This budget goes a long ways towards seeing that become a reality.


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