Paul Ryan is the Republicans' "ideas man". Shame his ideas are nonsense

To achieve his plan, Ryan would have to enact spending cuts which are "beyond draconian".

Paul Ryan, Mitt Romney's chosen Vice-Presidential candidate, has a reputation for being the brains of the Congressional Republican Party. But while he talks the talk, his brains are seemingly used more for misleading the public than coming up with credible fiscal policy.

This reputation stems largely from his role at the head of the House of Representatives' budget committee, where Ryan has spent the last 18 months rejecting the Democratic budget, while presenting his own vision of how the Government should be funded, through the "Ryan Plan".

Ryan's alternative budgets were presented annually from 2008, when the Democrats took control of both houses and the Presidency, but the first one to be passed by the House was his 2011 plan, which made it to the Senate before being shot down 57-40. The plan was updated and reintroduced earlier this year, but again fell in the face of Democratic opposition once it made it through the House of Representatives.

The ideological heart of the Ryan Plan can be found in its fourteenth slide:

There's a lot wrong with this graph: it assumes that the American healthcare paradigm, a system which all parties recognise as broken, will continue unless Ryan steps in and changes the country to the "path to prosperity"; it attempts to predict the Federal fiscal situation in 2080 when we can't even reliably predict what it will be like in 2018; and it took a lot of cajoling to get the CBO (an independent financial analysis organisation, and the model for our own OBR) to actually accept that Ryan's plan would result in anything like the debt dynamics he suggests. But it serves one purpose admirably, which is to convince the American public that Paul Ryan is a man who is Serious About Debt.

Unfortunately, that's just not particularly true. As Wonkblog reminds us, looking through his voting history reveals a typical Republican pattern: concerned about high taxes and "handouts", but little fear of the deficit per se. Ezra Klein writes:

He voted for the George W. Bush tax cuts, as well as the war in Iraq and the unfunded Medicare Prescription Drug Benefit. Perhaps his most ambitious policy proposal prior to his celebrated budgets was the Social Security Personal Savings Guarantee and Prosperity Act of 2005, a plan to privatize Social Security. The program’s actuaries found that Ryan’s plan would require $2.4 trillion in additional costs over the first 10 years, and the Bush administration ultimately dismissed it as “irresponsible.”

And one doesn't really need to look into the distant past to learn that the deficit itself ranks rather low on Ryan's list of priorities. His budget plans, like most, are easily split into two sections: changes to taxation, and changes to spending.

The tax changes are relatively simple, clearly specified, and hugely regressive. Ryan has proposed cutting federal income tax rates down to a baseline of 10 per cent and a 25 per cent marginal rate for higher earners, down from the current maximum of 35 per cent, and offset those cuts by removing most tax credits used by the poorest. The end result is a massive transfer of the burden of taxation from the wealthiest to the worst off in society, noteably leaving Romney himself paying just 0.82 per cent of his income in tax:

But while Ryan's tax plan is specified rather precisely, his spending plan isn't. It is famous for the slash-and-burn approach it takes to Medicare (health insurance for the elderly), Medicaid (health insurance for the poor) and Social Security (pensions): Ryan proposes cutting the budget for the first by around a quarter, for the second by around three-quarters, and capping the cost of the second in the face of a rapidly ageing population.

These policies would greatly increase human suffering across America, and have been blasted as "simultaneously ridiculous and heartless" by the likes of Paul Krugman. But they fit the idea of a hardcore deficit hawk. What doesn't is Ryan's policies on everything else – literally. The plan lumps "everything else" (that's defence, infrastructure, education, the environment, the civil service, the FBI. . .) together into a category on which Ryan claims spending will be cut to just 3.75 per cent of GDP.

That's a stupidly low number. It's even lower in the context of Romney's promise to spend 4 per cent of GDP on defence alone; that defence has never cost less than 3 per cent; and that even Ryan calls for a short term increase in defence spending.

Simply put, there is no way that a Romney/Ryan government would ever be able to achieve its spending ambitions. It would try, and hurt millions of people in the process, but even while cuts which are "beyond draconian" are being put in place, it would fail.

So Ryan has a clear, politically easy and well specified plan to cut revenue, and a vague, politically impossible plan to cut spending. It doesn't take a prophet to see that the former would be achieved in six months, while the latter would likely never come close to fruition. The hole in the budget would easily exceed the worst excesses of the Bush years (and that's assuming the Romney/Ryan administration doesn't launch a war with Iran).

So Ryan can credibly claim to be the candidate of lower taxes (for the rich) and can probably claim to be the candidate of smaller government (just not as small as he promises). But the candidate of a lower deficit, the candidate who can fulfil the promise made in the chart at the top of this post, is not him.

Paul Ryan and Mittens Romney. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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An unmatched font of knowledge

Edinburgh’s global reputation as a knowledge economy is rooted in the performance and international outlook of its four universities.

As sociologist-turned US Senator Daniel Patrick Moynihan recognised when asked how to create a world-class city, a strong academic offering is pivotal to any forward-looking, ambitious city. “Build a university,” he said, “and wait 200 years.” He recognised the long-term return such an investment can deliver; how a renowned academic institution can help attract the world. However, in today’s increasingly globalised higher education sector, world-class universities no longer rely on the world coming to come to them – their outlook is increasingly international.

Boasting four world-class universities, Edinburgh not only attracts and retains students from around the world, but also increasingly exports its own distinctively Scottish brand of academic excellence. In fact, 53.9% of the city’s working age population is educated to degree level.

In the most recent QS World University Rankings, the University of Edinburgh was named as the 21st best university in the world, reflecting its reputation for research and teaching. It’s a fact reflected in the latest UK Research Exercise Framework (REF), conducted in 2014, which judged 96% of its academic departments to be producing world-leading research.

Innovation engine

Measured across the UK, annual Gross Value Added (GVA) by University of Edinburgh start-ups contributes more than £164m to the UK economy. In fact, of 262 companies to emerge from the university since the 1960s, 81% remain active today, employing more than 2,700 staff globally. That performance places the University of Edinburgh ahead of institutions such as MIT in terms of the number of start-ups it generates; an innovation hothouse that underlines why one in four graduates remain in Edinburgh and why blue chip brands such as Amazon, IBM and Microsoft all have R&D facilities in the city.

One such spin out making its mark is PureLiFi, founded by Professor Harald Haas to commercialise his groundbreaking research on data transmission using the visible light spectrum. With data transfer speeds 10,000 times faster than radio waves, LiFi not only enables bandwidths of 1 Gigabit/sec but is also far more secure.

Edinburgh’s universities play a pivotal role in the local economy. Through its core operations, knowledge transfer activities and world-class research the University generated £4.9bn in GVA and 44,500 jobs globally, when accounting for international alumni.

With £1.4bn earmarked for estate development over the next 10 years, the University of Edinburgh remains the city’s largest property developer. Its extensive programme of investment includes the soon-to-open Higgs Centre for Innovation. A partnership with the UK Astronomy Technology Centre, the new centre will open next year and will supply business incubation support for potential big data and space technology applications, enabling start-ups to realise the commercial potential of applied research in subjects such as particle physics.

It’s a story of innovation that is mirrored across Edinburgh’s academic landscape. Each university has carved its own areas of academic excellence and research expertise, such as the University of Edinburgh’s renowned School of Informatics, ranked among the world’s elite institutions for Computer Science. 

The future of energy

Research conducted into the economic impact of Heriot-Watt University demonstrated that it generates £278m in annual GVA for the Scottish economy and directly supports more than 6,000 jobs.

Set in 380-acres of picturesque parkland, Heriot-Watt University incorporates the Edinburgh Research Park, the first science park of its kind in the UK and now home to more than 40 companies.

Consistently ranked in the top 25% of UK universities, Heriot-Watt University enjoys an increasingly international reputation underpinned by a strong track record in research. 82% of the institution’s research is considered world-class (REF) – a fact reflected in a record breaking year for the university, attracting £40.6m in research funding in 2015. With an expanding campus in Dubai and last year’s opening of a £35m campus in Malaysia, Heriot-Watt is now among the UK’s top five universities in terms of international presence and numbers of international students.

"In 2015, Heriot-Watt University was ranked 34th overall in the QS ‘Top 50 under 50’ world rankings." 

Its established strengths in industry-related research will be further boosted with the imminent opening of the £20m Lyell Centre. It will become the Scottish headquarters of the British Geological Survey, and research will focus on global issues such as energy supply, environmental impact and climate change. As well as providing laboratory facilities, the new centre will feature a 50,000 litre climate change research aquarium, the UK Natural Environment Research Council Centre for Doctoral Training (CDT) in Oil and Gas, and the Shell Centre for Exploration Geoscience.

International appeal

An increasingly global outlook, supported by a bold international strategy, is helping to drive Edinburgh Napier University’s growth. The university now has more than 4,500 students studying its overseas programmes, through partnerships with institutions in Hong Kong, Singapore, China, Sri Lanka and India.

Edinburgh Napier has been present in Hong Kong for more than 20 years and its impact grows year-on-year. Already the UK’s largest higher education provider in the territory, more than 1,500 students graduated in 2015 alone.

In terms of world-leading research, Edinburgh Napier continues to make its mark, with the REF judging 54% of its research to be either world-class or internationally excellent in 2014. The assessment singled out particular strengths in Earth Systems and Environmental Sciences, where it was rated the top UK modern university for research impact. Taking into account research, knowledge exchange, as well as student and staff spending, Edinburgh Napier University generates in excess of £201.9m GVA and supports 2,897 jobs in the city economy.

On the south-east side of Edinburgh, Queen Margaret University is Scotland’s first university to have an on-campus Business Gateway, highlighting the emphasis placed on business creation and innovation.

QMU moved up 49 places overall in the 2014 REF, taking it to 80th place in The Times’ rankings for research excellence in the UK. The Framework scored 58% of Queen Margaret’s research as either world-leading or internationally excellent, especially in relation to Speech and Language Sciences, where the University is ranked 2nd in the UK.

In terms of its international appeal, one in five of Queen Margaret’s students now comes from outside the EU, and it is also expanding its overseas programme offer, which already sees courses delivered in Greece, India, Nepal, Saudi Arabia and Singapore.

With 820 years of collective academic excellence to export to the world, Edinburgh enjoys a truly privileged position in the evolving story of academic globalisation and the commercialisation of world-class research and innovation. If he were still around today, Senator Moynihan would no doubt agree – a world-class city indeed.

For further information www.investinedinburgh.com