3 Center for American Progress | How the Ryan Budget Fails Our Economy by Failing Economics
CBO’s revisions o is economic orecas have increased is deﬁci projecions by more han $1 rillion over he nex 10 years.
Tis exra $1 rillion in deﬁcis does no occur because he governmen is spending more or axing less: By embracing auseriy a he wrong ime, Congress has permanenly shrunk he size o he U.S. economy, making our deﬁci siuaion worse under any budge plan.
Giving away the future to hit an arbitrary number
A large porion o public invesmen is unded by he nondeense discreionary budge. Bu insead o making new invesmens, he House Republican budge cus nondeense discreionary spending below even he economically desrucive levels imposed by sequesraion.
I did he same hing las year, bu even House Republicans ulimaely rejeced hose unrealisic cus when hey ailed o wrie deailed spending bills o imple-men heir own budge.
While Rep. Ryan seems o have aken no policy lessons rom his ailure, he does seem o have learned one imporan poliical lesson: Tis year, his budge does no require any new cus or ﬁscal year 2015he only year or which his Congress has o wrie deailed spending bills. Saring in FY 2016, he budge reurns o he deep, absrac cus o nondeense discre-ionary spending i could no make add up las year. Over 10 years, i cus nondeense discreionary programs by $791 billion.
By 2024, he ﬁnal year or which he budge provides spend-ing caps, i cus nondeense discreionary spending o a level ha is 19 percen lower han even he sequeser levels rom FY 2013, once inﬂaion is aken ino accoun. Te Ryan budge’s FY 2024 nondeense discreionary levels are 34 percen lower han he pre-auseriy level rom FY 2010.Te 2013 sequeser cus hrew more han 57,000 children ou o Head Sar preschools,
salled scieniﬁc research,
and eliminaed hundreds o housands o jobs.
Te eﬀecs would have been even worse i Congress had allowed sequesraion o coninue unabaed.
CBO esimaed ha sequesra-ion would have reduced GDP by 0.6 percen and eliminaed 800,000 jobs by he end o 2014.
Bu even sequesraion would be a ar beter economic policy han his House Republican budge.
The Ryan budget's extreme austerity
Base nondefense discretionary budget authority, in billions of constant 2014 dollars
Sources: Congressional Budget Oﬃce, "An Analysis of the President's Budgetary Proposals for Fiscal Year 2011" (2010), available at http://www.cbo.gov/sites/default/ﬁles/cboﬁles/ftpdocs/112xx/doc11280/03-24-apb.pdf; Joel Friedman, Sharon Parrott, and Richard Kogan, "Too Little to Go Around" (Washington, Center on Budget and Policy Priorities, 2013), available at http://www.cbpp.org/cms/index.cfm?fa=view&id=3969; House Budget Committee, "The Path to Prosperity: Fiscal Year 2015 Budget Resolution" (2014), available at http://budget.house.gov/ uploadedﬁles/fy15_blueprint.pdf.
FY 2010(Pre-austerity)FY 2013(Sequester)FY 2024(Ryan budget)