BusinessBusinesspaul ryan budget 2014paul ryan budget proposal

Paul Ryan's Budget Would Destroy 2 Million Jobs In Single Year: EPI

Paul Ryan's Budget Would Destroy 2 Million Jobs, Analysis Finds
By 

Economics writer

|

The budget plan that Rep. Paul Ryan (R-Wis.) unveiled on Tuesday would eliminate 2 million jobs in 2014, according to a new analysis by the Economic Policy Institute (EPI).

If implemented, Ryan's "Path to Prosperity" plan would shrink the U.S. economy by 1.7 percent and increase the unemployment rate by 0.6 to 0.8 percentage points, EPI found.

Ryan's proposal to cut the budget by $4.6 trillion over the next 10 years would depend largely on slashing domestic spending. But it has little chance of becoming law, according to political experts.

"In short, the Ryan budget would reduce middle class living standards, both present and future," Andrew Fieldhouse, a federal budget policy analyst at EPI, wrote in the report.

Many economists agree that slashing government spending in a weak economy destroys jobs.

The government already is making harsh spending cuts likely to impact the economy. The sequestration -- automatic spending cuts that took effect on March 1 -- will eliminate about 750,000 jobs this year if it is not adjusted or repealed, according to the Congressional Budget Office.

The government has already cut 740,000 jobs since President Barack Obama took office, according to the Labor Department. The unemployment rate would have been 7.2 percent in February -- instead of 7.7 percent -- if government employment levels had stayed the same since the end of 2008, according to the Wall Street Journal.

Our 2024 Coverage Needs You

As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.

Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.

to keep our news free for all.

Support HuffPost

Before You Go

What The GOP Doesn't Want You To Know About The Deficit
The Deficit Has Grown Mostly Because Of The Recession(01 of11)
Open Image Modal
The deficit has ballooned not because of specific spending measures, but because of the recession. The deficit more than doubled between 2008 and 2009, as the economy was in free fall, since laid-off workers paid less in taxes and needed more benefits. The deficit then shrank in 2010 and 2011. (credit:AP)
The Stimulus Cost Much Less Than Bush's Wars, Tax Cuts(02 of11)
Open Image Modal
Republicans frequently have blamed the $787 billion stimulus for the national debt, but, when all government spending is taken into account, the stimulus frankly wasn't that big. In contrast, the U.S. will have spent nearly $4 trillion on wars in the Middle East by the time those conflicts end, according to a recent report by Brown University. The Bush tax cuts have cost nearly $1.3 trillion over 10 years. (credit:Getty)
The Deficit Grew Under George W. Bush(03 of11)
Open Image Modal
When George W. Bush took office, the federal government was running a surplus of $86 billion. When he left, that had turned into a $642 billion deficit. (credit:AP)
The Deficit Is Shrinking(04 of11)
Open Image Modal
Last year's federal budget deficit was 12 percent lower than in 2009, according to the Office of Management and Budget.The deficit is projected to shrink even more over the next several years. (credit:AP)
Investors Are Paying Us To Borrow Money(05 of11)
Open Image Modal
The interest rate on 10-year Treasury bonds is negative, according to the Treasury Department. Investors are even paying us for 30-year Treasury bonds, when adjusted for inflation. (credit:AP)
Investors Are Not Running Away(06 of11)
Open Image Modal
Conservative commentators have been warning for years that investors will run away from Treasury bonds because of the national debt. So far it's not happening. Interest rates on Treasury bonds continue to hover at historic lows. (credit:AP)
Health Care Reform Reduces The Deficit(07 of11)
Open Image Modal
Republicans have blasted the Affordable Care Act as "budget-busting." But health care reform actually reduces the deficit, according to the Congressional Budget Office. (credit:Getty)
The U.S. Is Borrowing Less From China(08 of11)
Open Image Modal
The U.S. government is borrowing much less from foreign countries than before the recession, according to government data cited by Paul Krugman. That is because the U.S. private sector is financing our bigger deficits. (credit:Getty)
We Spend A Lot On Defense(09 of11)
Open Image Modal
Defense spending constituted 20 percent of federal spending last year, or $718 billion, according to the Center on Budget and Policy Priorities. This adds up to 41 percent of the world's defense spending, according to Bloomberg TV anchor Adam Johnson. Mitt Romney has vowed to not cut defense spending if elected president. (credit:AP)
We Spend A Lot On Health Care(10 of11)
Open Image Modal
Health insurance, including Medicare and Medicaid, constituted 21 percent of federal spending last year. In contrast, education constituted 2 percent of federal spending. Meanwhile, Mitt Romney and Paul Ryan have promised not to change Medicare for Americans age 55 and older. (credit:AP)
Republicans May Want Large Deficits For Now(11 of11)
Open Image Modal
The federal budget deficit ballooned under Ronald Reagan, and that may be just the way Republicans like it. Some Republican thinkers have proposed "starving the beast": that is, cutting taxes in order to use larger deficits to justify spending cuts later. Since Republicans ultimately want lower taxes and a smaller government, what better way is there to cut spending than to make it look urgent and necessary? (credit:AP)
Suggest a correction
|
Submit a tip