One particular laugh line from Paul Ryan’s budget proposal is his citation of the Heritage Foundation as the analytic basis for his claim that it will boost growth:
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.
I wonder if the Heritage Foundation has ever looked at the myriad benefits of tax cuts for the rich before. It turns out they have! Specifically, they promised us that George W Bush’s tax policies would lead the country into a brave new era of prosperity:
In fact by the end of 2009, payroll employment in the United States was back down to 2001 levels despite population growth.
Heritage also claimed Bush’s tax cuts would boost tax revenue (“the national debt would effectively be paid off by FY 2010”) when in fact it led to record deficits, and they promised a surge in personal income when in fact we got the worst income performance ever:
So keep in mind that this is the metric by which Paul Ryan wants you to judge him. If you believe George W Bush unleashed an unprecedented economic boom with great jobs performance, rising incomes, and the paying off of the national debt then you’ll find a lot to like about Rep Ryan’s plan.