With his speech to news editors and executives this week, President Obama has made it clear that he plans to run a starkly ideological campaign, contrasting his vision for the future of the country with that of his Republican opponents. And, he plans to make the Republican budget, written by rising GOP star Rep. Paul Ryan of Wisconsin and embraced by presumptive Republican nominee Mitt Romney, exhibit one in that contrast. It would be worthwhile therefore to actually compare that budget with the one proposed by the president.
Deficits and Debt
The president’s budget proposal would reduce future deficits — at least until 2018 — but would never achieve balance. By 2018, the president projects deficits to fall to only $575 billion. After that, they begin rising again, reaching $704 billion by 2022. Overall, the president’s budget would add an additional $6.7 trillion to the national debt over the next 10 years.
The president’s budget proposal would reduce future deficits — at least until 2018 — but would never achieve balance. By 2018, the president projects deficits to fall to only $575 billion. After that, they begin rising again, reaching $704 billion by 2022. Overall, the president’s budget would add an additional $6.7 trillion to the national debt over the next 10 years.
Paul Ryan does better when it comes to deficit reduction, but only because the president has set such a low bar. Unlike the president, Ryan would eventually balance the budget — but not until 2040 or so. He does, however, generally run much lower annual deficits than the president would, and adds $3.3 trillion less to the national debt over the next 10 years.
Over the longer-term, the differences are much more pronounced. By 2050, for instance, Ryan would be running a surplus equal to as much as 3 percent of GDP. The president’s budget, in contrast, projects that we would still face budget deficits in excess of 6 percent of GDP.
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