Where Ryan Loses Credibility

Apr 5 2011 @ 3:19pm

With delusions like this:

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.

That's way off any sane economist's view. The assumption, moreover, is that major income tax cuts will dramatically boost economic growth. So why then were the Clinton years – after he raised taxes – such a success, and the Reagan years when he raised taxes such a boom, and the Bush years, with huge tax cuts paid for by borrowing from the Chinese, such a disappointment?

To put it mildly, this an ideological statement, not an empirical one.