Menu Close
Posted in Contributors- Economic and Financial, Other Guys

Mitt Romney And Extreme Fiscal Policy – Simon Johnson – The Baseline Scenario

This is a syndicated repost courtesy of The Baseline Scenario. To view original, click here. Reposted with permission.

By Simon Johnson

…The budget ideas of Mr. Romney and the other Republican presidential candidates in the primaries mostly focused on proposals to cut taxes. The Committee for a Responsible Federal Budget assessed Mr. Romney’s specific ideas as likely to increase national debt to close to 100 percent of gross domestic product by 2021, using net federal debt held by the private sector, which is currently around 75 percent of G.D.P…

Mr. Ryan is different. Rather than just wanting to cut taxes, he definitely and very specifically wants to reduce government spending. Mr. Ryan’s proposals are phased in – and in some versions debt would increase a great deal before it stabilizes. The difference between his approach and Mr. Romney’s is fundamental and clear: Mr. Ryan tells you what he would cut.

His Medicare proposals have received the most attention… this Medicare proposal, part of Mr. Ryan’s 2011 budget, was scored by the C.B.O. at Mr. Ryan’s request.

Mr. Ryan must have been surprised and disappointed when the C.B.O. determined that changing Medicare in this fashion would actually increase total health-care costs (as a percentage of the economy).

The entire post is available at The Baseline ScenarioView original post.


Wall Street Examiner Disclosure: Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. No endorsement of such content is either expressed or implied by posting the content. All items published here are matters of information and opinion, and are neither intended as, nor should you construe it as, individual investment advice. Do your own due diligence when considering the offerings of information providers, or considering any investment.

Related Posts