House Budget Committee Chairman Paul Ryan released his proposed budget plan yesterday. This will be the focal point of America’s fiscal policy debate for at least the next two years, so I’m going to write about it quite a bit. Today I’ll start by showing you the macro fiscal picture, and by comparing Chairman Ryan’s budget to President Obama’s. Since most people don’t enjoy a good table of numbers as much as I do, we’ll compare them visually.
We’ll look at the short-term first, then the long-term.
Let’s begin by comparing the short-term deficit effects of the two proposals. On each of the following graphs, solid lines represents Chairman Ryan’s budget and dashed lines represents President Obama’s budget. Spending will always be in red, taxes in blue, and deficits and debt in yellow. Everything is measured as share of the economy. As always, you can click on any graph to see a larger version.