Congressman Paul Ryan, the Republican Chairman of the House Budget Committee, has unveiled the GOP’s latest budget plan.
Is this proposal deserving of applause or criticism? The answer is yes and yes, with a bit of emphasis on the former.
Let’s start with some depressing news. The Ryan budget has gotten weaker each year.
Three years ago, he put forth a budget that limited spending so that it grew 2.8 percent per year.
Two years ago, he put forth a budget that limited spending so that it grew 3.1 percent per year.
Last year, he put forth a budget that limited spending so that it grew 3.4 percent per year.
His latest budget continues this slide in the wrong direction. Here are the numbers from the new budget, showing that the burden of government spending will rise by an average of 3.5 percent annually over the next 10 years.
And this is during a time when inflation is projected to be about 2 percent per year!
Since it would be foolish to ever expect perfection from the political process, let’s now look at the positive features of the Ryan budget.
1. Spending may be growing, but it would grow at a slower rate than the President’s proposed budget.
2. Spending may be growing, but it would grow at a slower rate than nominal economic output, thus satisfying Mitchell’s Golden Rule.