3Center or American Progress | New Ryan Budget Cuts Investments in America’s Future
corporaions—privae business invesmen experienced he slowes growh o any eco-nomic expansion in poswar U.S. hisory.
Te pace o invesmen in he U.S. economy ell rom 18 percen o gross domesic prod-uc, or GDP, in 2000—he oal value o goods and services produced by workers andequipmen in he Unied Saes—o 16 percen in 2007, he eve o he Grea Recession.
Invesmen plunged o jus 11 percen o GDP in 2009, as he nancial crisis and he bursing housing bubble ook is oll—and beore he Recovery and Reinvesmen Aco 2009 helped reaccelerae invesmen o 13 percen o GDP in 2012.
Amid alering U.S. invesmen under Presiden Bush’s ineecive policies in he 2000sand he poliical gridlock since hen, oher naions have raced ahead. China and India,or example, are making remarkable srides in educaional qualiy and atainmen,allowing hem o rapidly converge on advanced-economy counries such as he UniedSaes.
In 2007 China surpassed he Unied Saes in heir annual number o science,echnology, engineering and mahemaics, or SEM, graduaes. And by 2030 China willhave more college graduaes han he enire U.S. workorce.
While our compeiors coninue o bolser heir public invesmens, American inra-srucure and educaion are crumbling or wan o resources, creaing real economiccoss or businesses and amilies. According o Naional Science Foundaion gures,ederal invesmens in research and developmen ell rom 1.1 percen o GDP in heearly 1990s o 0.8 percen o GDP in 2009, he las year or which daa are available.
Yet another conservative plan to disinvest in America
Rep. Ryan’s plan o disinves in he Unied Saes by $1.2 rillion could no be more illconceived. Insead o laying he oundaion or produciviy and economic opporuniy in he Unied Saes, he Ryan budge akes us in he wrong direcion—disinvesingin he American economy o give ax cus o he riches o he rich while allowing heoundaions or susained privae invesmen o crumble. We compare his House budge plan—or public invesmens in educaion and raining,ransporaion and inrasrucure, and science, space, and echnology—o merely main-aining unding or ederal public invesmen a he same level i was in 2010—beoreconservaive cus began undermining economic growh.
Te projeced consan-levelinvesmen gures are compared o he shrinking invesmen levels proposed by Rep.Ryan, adjused or infaion o 2013 dollars, and expressed in per capia erms.For he good o U.S. economic growh and prosperiy, invesmen would ideally go up, asis he case in many compeior counries. Bu even viewed agains he low bar o keepinginvesmen a he same 2010 levels, we can see jus how seeply he Ryan budge cus crii-cal invesmens. Te deails o he proposed cus are equally alarming.