The Chilling Math of Paul Ryan's Budget

mikeydoggy

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Tuesday April 05, 2011 · 3:12 PM PDT

2011/04/05 · 15:12

Let's walk through the numbers of GOP hatchetman Paul Ryan's plan to see what happens if we follow what he proposes and subtract $580 billion from U.S. eocnomic output over a 10-year period.

We start off with a currrent GDP of $14,700 bln.

Year 1 14120
Year 2 13540
Year 3 12960
Year 4 12380
Year 5 11800
Year 6 11220
Year 7 10640
Year 8 10060
Year 9 9480
Year 10 8900

You can see that by year 10, economic output has shrunk 40%.

Given that the unemployment rate shot up about 5 percentage points when the economy contracted a mere 5% in 2009, we can guestimate that unemployment would increase by 40%. That means we'd have a 50% unemployment rate. Half the workforce would be unemployed.

This is Ryan's "Path to Prosperity."

It's catastrophic. This is a Great Depression.

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