Paul Ryan’s Magical Jobs Plan

A savvy question from TP that I’m glad to answer since I’ve spend a fair amount of the past 24 hours trying to figure it out:

Having embarrassed itself with a kookily optimistic projection of the employment benefits of Paul Ryan’s plan to raise middle class taxes and abolish Medicare, the Heritage Foundation then made the analysis disappear down the memory hole.

Menzie Chinn: Econbrowser: The Year in Review II: Yet More Fantastical Pseudo Economics: Time to emulate the media’s "year in review" pieces, with my own take on the most outrageous, nonsensical assertions presented in the guise of analysis…. The inspirations range from (once again) the Heritage Foundation's analyses (where have you gone, Bill Beach!) to the ongoing search for hyperinflation/crowding out.

Tim Fernholz reports: “An analysis performed by the conservative Heritage Foundation at Ryan’s request found the unemployment rate would be reduced to 4 percent in 2015 by Ryan’s budget, an incredibly low number when many economists believe the economy will not return to so-called “full employment” of about 5 percent until years after that.”