Rep. Paul Ryan (R-WI) today released the House Majority’s 2012 alternative budget (link in PDF), which would cut trillions of dollars in federal spending over the next decade.
In preparing his budget, Ryan asked The Heritage Foundation’s Center for Data Analysis to provide an economic analysis of his proposal (link in PDF). Appearing on today’s morning shows, Ryan summarized our findings.
Watch the video of his appearance this morning on CNBC:
In a Wall Street Journal column this morning, Ryan outlines Heritage’s analysis in more detail:
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.
Ryan’s plan tackles unsustainably high federal spending at a crucial point in American history. Absent reforms, runaway federal spending will soon consume more and more taxpayer money, potentially leading to economic crisis.
Under Ryan’s alternative budget, a better scenario lies ahead. In today’s Morning Bell, Heritage economist Alison Fraser, director of our Roe Institute for Economic Policy Studies, explains what the budget accomplishes:
No budget in decades has had the potential for so fundamentally improving the nation’s prosperity and restoring its vast promise. This is a monumental budget proposal for monumental times, and it opens a serious and necessary conversation about the future of our nation and its great legacy of freedom, opportunity, and self-government.
Update: Our experts have submitted additional information to Ryan’s staff to adjust projections of the budget’s employment effects.
What do you think about Paul Ryan’s proposed budget?