Why Paul Ryan's Budget Numbers Don't Add Up
slate.com — Rep. Paul Ryan's 2012 budget has ambitions far beyond 2012. It aims not just to set priorities for a single year, but also to wrench the country back into the black. The theory is straightforward enough: Tax cuts to wealthy Americans foster prosperity that moves millions of (less wealthy) Americans back to work, with increasing wages. High earnings and employment bolster tax revenue. When combined with huge cuts in domestic spending and radical changes to Medicaid and Medicare, the budget balances out in about 20 years. Ryan's plan relies on economic forecasting from the Heritage Foundation's Center for Data Analysis. Unfortunately, at least for Ryan, some of its numbers have been exposed as a bit fantastical. Which raises at least two questions: How did Heritage get it wrong? And can we trust its other numbers?