Barrack Obama vs.. Paul Ryan Pt.1

President Obama and Rep. Paul Ryan are in a battle. They both may have similar plans on cutting big spending, reforms to entitlements like Medicare and a form of automatic trigger if Congress fails to act. It might be similar yet they are some sharp contrasts to be noted in both plans.

Obama and Ryan’s plan basically focus on sharply cutting federal spending in relation to baseline forecasts but Ryan’s plan would be deeper than Obama’s which would of course result in the reduction in the size of government.

President Obama’s plan would be for a major cut in discretionary nonsecurity spends. Obama’s idea would result in about $200 billion savings in addition to what was planned earlier by the president in his original 2012 budget.

Ryan’s plan would also trim discretionary nonsecurity spending by an approximate amount of $923 billion given a similar period of time. The Republican’s plan targets are further cutting down cost on mandatory programs except Medicaid, Medicare and Social Security to a tune of about $1.8 trillion between now and 2022.

Ryan’s plan is an expected to cause a fall from 12% GDP last year to 6% in 2022 and further reduce to 3.5% by 2050.