The Six Trillion Dollar Solution for Speaker Paul Ryan in the Lion’s Den

House Speaker Paul Ryan (R-WI) (photo credit: Gage Skidmore)
House Speaker Paul Ryan (R-WI) (photo credit: Gage Skidmore)

A great stage magician will distract his audience with his right hand while performing his conjuring tricks with his left. Washington is nothing if not a magic show. Let me show you what’s really going on while you are distracted by the razzle-dazzle of the admittedly consequential Trump/Cruz/Rubio/Bush/etc. presidential race.

There is an onrushing budget drama in the Congress. You’ll be reading about it, if you have not yet, soon. The key to its resolution lies in the “Kadlec Curve.” Every one tenth of one percent of increase in the GDP brings in, over ten years, $314 billion to the Treasury.

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“The Kadlec Curve.” Every one tenth of one percent of increase in the GDP brings in, over ten years, $314 billion to the Treasury. Holy smokes! That means that bringing America’s growth rate up to the Reagan-Clinton levels of around 4% would bring the US Treasury six trillion dollars over ten years! 2+% greater growth would put Uncle Sam quickly back into surplus.

Not incidentally that level of economic growth would be something like ten times as beneficial to the private sector … very much including roaring job creation and upward income mobility for median families. Win win.

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To read the full column at Forbes.com click here.

Ralph Benko, internationally published weekly columnist, co-author of The 21st Century Gold Standard, lead co-editor of the Gerald Malsbary translation from Latin to English of Copernicus’s Essay on Money, is American Principles Project’s Senior Advisor, Economics.