Our budget, which we call The Path to Prosperity, is very different. For starters, it cuts $6.2 trillion in spending from the president’s budget over the next 10 years, reduces the debt as a percentage of the economy, and puts the nation on a path to actually pay off our national debt. Our proposal brings federal spending to below 20% of gross domestic product (GDP), consistent with the postwar average, and reduces deficits by $4.4 trillion.
A study just released by the Heritage Center for Data Analysis projects that The Path to Prosperity will help create nearly one million new private-sector jobs next year, bring the unemployment rate down to 4% by 2015, and result in 2.5 million additional private-sector jobs in the last year of the decade. It spurs economic growth, with $1.5 trillion in additional real GDP over the decade. According to Heritage’s analysis, it would result in $1.1 trillion in higher wages and an average of $1,000 in additional family income each year.
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Yeah, buddy. Bring it on.
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I have had some thoughts, during a 20 hour car driving marathon this last week, which lead me to believe that trying to reduce the deficit in actual dollar terms is probably economic malice.
The US has run budget surpluses for an extended period of time 6 times, I believe, and each time has been followed by a period of economic calamity. I can plop up the details if anybody wants to see it.
Its a new beast, the US, in its unbacked currency era, and its balance sheet is not comparable to that of a household, or to that of Greece, and our “debt” itself is a debatable concept.
I’d have to write an entire blog to back those statements, but in the end I sincerely doubt this plan will result in economic glory.
Interesting Checklist. I’d like to see you write that entire blog so that I could read your ideas fleshed-out. I agree with your 3rd paragraph.
ok, I will try to post it up if I can remember how to post in the PG. It will take a day or 3 as I’d want to write an intelligent post and not just slop it out here full of my usual radioactive cocaine jokes and stuff.
I honestly think that for all practical purposes everybody misunderstands our monetary system. And that QE is probably deflationary to prices on a small scale, while inflationary to asset prices, and more.