James Pethokoukis

The anti-Paul Ryan plan

April 12, 2011

The Congressional Progressive Caucus has finally released its response to Rep. Paul Ryan’s Path to Prosperity.  ”The People’s Budget”  is almost like a parody of a liberal Democratic plan. It proposes raising taxes by $4 trillion over ten years and cutting spending (mostly defense) by $900 billion. (Ryan would cut spending by $6 trillion.) It would take tax revenue as a share of GDP to 22.3 percent vs. a previous all-time high of 20.9 percent in World War Two. Even worse, the plan only goes out a decade since its tax hikes still wouldn’t balance the budget long-term because it ignores healthcare reform.

Just how worrisome is the U.S. growth slowdown?

April 12, 2011

After taking a look at the new trade numbers, Wall Street firms are slashing their GDP growth forecasts for the first quarter of this year. Both Macroeconomic Advisers and Morgan Stanley now think growth will be just 1.5 percent. We are getting into dangerous territory, so says the Dallas Fed:

Will Obama endorse Bowles-Simpson debt plan?

April 12, 2011

Will President Obama finally endorse the debt plan of his own debt commission in his big speech tomorrow?

Romney 2012: Is U.S. ready for its first buyout president?

April 12, 2011

Mitt Romney’s campaign launch for the Republican presidential nomination predictably avoided mentioning the Obamacare-like health plan he created as Massachusetts governor. But it also gently tiptoed around his financially successful career as a buyout boss. With the financial crisis still raw to voters, selling them on the first president to be drawn from the buyout barony will be tough.