Jobs / Economy
Ryan Budget’s Enormous Budget Cuts Would Result In 4.1 Million Jobs Lost Through 2014.
s latest budget
doesn’t just fail to address job creation, it
slows job growth. Against a currentpolicy baseline, the budget cuts discretionary programs by about $120 billion over the next two years andmandatory programs by $284 billion, sucking demand out of the economy when it most needs it and leading to job loss. Using a standard macroeconomic model that is consistent with that used by private- and public-sector forecasters, the shock to aggregate demand from near-term spending cuts would result in
roughly 1.3million jobs lost in 2013 and 2.8 million jobs lost in 2014, or 4.1 million jobs through 2014.
CAP: Ryan Budget Would Embrace “An Immediate Swerve Into Severe Austerity,” Undermine
The Center for American Progress wrote,
“Though we’ve recently enjoyed several
months of solid job growth, our current economic recovery is by no means assured, and we still have a long way to go to get back to full economic health. Not only does the House Republican budget plan fail topropose even a single new idea for spurring job creation, it would also force an immediate swerve into severe
austerity. It’s an economic prescription that, as Europe is finding out, will make matters much worse.”[Center for American Progress, “The 6 Key Failures of the House Republican Budget Plan,”
Middle / Low Income
Ryan Budget Would Ensure That “
By 2050, Most Of The Federal Government Aside From Social
Security, Healthcare, And Defense Would Cease To Exist.”
“House Budget Committee Chairman PaulRyan’s new budget plan specifies a long
-term spending path under which, by 2050, most of the federalgovernment aside from Social Security, health care, and defense would cease to exist, according to figures in a
Congressional Budget Office analysis released today.” [Center for Budget and Policy Priorities,
Ryan Budget’s Spending Priorities Would Exclude Nearly Every Government Function Other ThanHealth Care And Defense, Including Veterans’ Programs, Highway Funding, Education, Food
Safety, And Law Enforcement.
“The CBO report, prepared at Chairman Ryan’s request, shows that Ryan’s
budget path would shrink federal expenditures for everything other than Social Security, Medicare, Medicaid,
the Children’s Health Insurance Program (CHIP), and interest payments to just 3¾ percent of the
domestic product (GDP) by 2050. Since, as CBO notes, ‘spending for defense alone has not been lower than3 percent of GDP in any year [since World War II]’ and Ryan seeks a high level of defense spending —
defense funding by $228 billion over the next ten years above the
therest of government would largely have to disappear.
That includes everything from veterans’ programs to
medical and scientific research, highways, education, nearly all programs for low-income families andindividuals other than Medicaid, national parks, border patrols, protection of food safety and the watersupply, law enforcement, and the like. (In the same vein, CBO also notes that spending for everything otherthan Social Security, Me
dicare, Medicaid, and interest “has exceeded 8 percent of GDP in every year since World War II.” [Center for Budget and Policy Priorities,
Ryan Budget Would Reduce Federal Spending To Levels Not Seen Since 1950, Before Medicare,Medicaid And Federal Spending For Education, Highways And Environmental Protection EvenExisted.
“In addition, CBO shows that
including Social Security, interest, and healthcare
would fall to 16 percent of GDP by 2050 under Ryan’s budget path, a target specifically included in
the Ryan budget resolution. This would be the lowest level since 1950, when Medicare, Medicaid, mostfederal funding for education, highways, and environmental protection, and various other significant federal
activities did not exist.” [Center for Budget and Policy Priorities,