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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A global marketplace: the internet represents exporting’s biggest opportunity

The advent of the internet age has made the whole world a single marketplace. Selling goods online through digital means offers British businesses huge opportunities for international growth. The UK was one of the earliest adopters of online retail platforms, and UK online sales revenues are growing at around 20 per cent each year, not just driving wider economic growth, but promoting the British brand to an enthusiastic audience.

Global e-commerce turnover grew at a similar rate in 2014-15 to over $2.2trln. The Asia-Pacific region, for example, is embracing e-marketplaces with 28 per cent growth in 2015 to over $1trln of sales. This demonstrates the massive opportunities for UK exporters to sell their goods more easily to the world’s largest consumer markets. My department, the Department for International Trade, is committed to being a leader in promoting these opportunities. We are supporting UK businesses in identifying these markets, and are providing access to services and support to exploit this dramatic growth in digital commerce.

With the UK leading innovation, it is one of the responsibilities of government to demonstrate just what can be done. My department is investing more in digital services to reach and support many more businesses, and last November we launched our new digital trade hub: www.great.gov.uk. Working with partners such as Lloyds Banking Group, the new site will make it easier for UK businesses to access overseas business opportunities and to take those first steps to exporting.

The ‘Selling Online Overseas Tool’ within the hub was launched in collaboration with 37 e-marketplaces including Amazon and Rakuten, who collectively represent over 2bn online consumers across the globe. The first government service of its kind, the tool allows UK exporters to apply to some of the world’s leading overseas e-marketplaces in order to sell their products to customers they otherwise would not have reached. Companies can also access thousands of pounds’ worth of discounts, including waived commission and special marketing packages, created exclusively for Department for International Trade clients and the e-exporting programme team plans to deliver additional online promotions with some of the world’s leading e-marketplaces across priority markets.

We are also working with over 50 private sector partners to promote our Exporting is GREAT campaign, and to support the development and launch of our digital trade platform. The government’s Exporting is GREAT campaign is targeting potential partners across the world as our export trade hub launches in key international markets to open direct export opportunities for UK businesses. Overseas buyers will now be able to access our new ‘Find a Supplier’ service on the website which will match them with exporters across the UK who have created profiles and will be able to meet their needs.

With Lloyds in particular we are pleased that our partnership last year helped over 6,000 UK businesses to start trading overseas, and are proud of our association with the International Trade Portal. Digital marketplaces have revolutionised retail in the UK, and are now connecting consumers across the world. UK businesses need to seize this opportunity to offer their products to potentially billions of buyers and we, along with partners like Lloyds, will do all we can to help them do just that.

Taken from the New Statesman roundtable supplement Going Digital, Going Global: How digital skills can help any business trade internationally

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