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the most important decision that is never debated

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  • the most important decision that is never debated

    The growth rate of state and local government as a percentage of total GDP just continues.

    It is empirically obvious that post-9/11 the Federal government is growing more rapidly due to active warfare in multiple countries and more intrusion into the everyday lives of US citizens.

    But less obvious is the enormous growth of state and local governments...part of a very long trend but recently accelerated from the Great Asset Inflation and what that has meant in terms of wildly higher tax receipts.

    And of course all these public employees are often unionized and receive generous defined benefit plans that are no longer found in the private sector.

    When will the government share of GDP exceed 50%? In the not too distant future at the current growth rate.

    Like all the most important things, this one is never subject to any real debate.

    It happens slowly and inexorably just like you don't notice your kids growing up because you see them every day.

    I define this as facism because government is fundamentally about coercion and compulsion. The ideals of the US are personal liberty and this is the opposite of personal liberty.

    Okay, here are the facts and reference URLs:

    First, by employment:

    http://www.bls.gov/news.release/empsit.nr0.htm

    22 million employed in the public sector in the US.
    106 million employed in the private sector in the US.

    By GDP percentages:

    http://www.econlib.org/library/Enc/G...tSpending.html
    this shows a chart of federal spending in the US and compares with Sweden and includes a discussion about the steady increase in government as a percentage of overall GDP


    And, by US$
    http://www.bea.gov/national/nipaweb/...=2006&Freq=Qtr

    GDP $13.487 trillion

    state, federal and local government $3.5 trillion
    government consumption and gross investment $2.5 trillion

    Total government $6 trillion or 44.4% of total GDP

    All using official US government numbers

  • #2
    Re: the most important decision that is never debated

    Grapejelly,

    The is a limit, commonly stated: No organism can expand beyond its available resources.

    In this case, the productive members of society will have to eventually fight off the many parasites or perish.

    Comment


    • #3
      Re: the most important decision that is never debated

      Originally posted by Sapiens
      Grapejelly,

      The is a limit, commonly stated: No organism can expand beyond its available resources.

      In this case, the productive members of society will have to eventually fight off the many parasites or perish.
      Except, of course, the US federal government can loot other countries - some think this has been going on for decades already, so what's the real limit -

      1. US GDP, or
      2. world GDP, or
      3. the GDP of all countries without nukes

      Comment


      • #4
        Re: the most important decision that is never debated

        Originally posted by grapejelly
        The growth rate of state and local government as a percentage of total GDP just continues ...
        We have to take care not to be distracted by politicians crowing about reducing taxes. All that does is transfer the costs from direct taxation to inflation and future taxation. The botton line is always and everywhere the spending.

        Well, it's even more than that, because legislation, regulation, and litigation expand, too, and whether or not we have nominal title to assets and income matters little if the government tells us what we may and may not do with it anyway.

        Looked at in toto, government continues to grow at all levels. Our leadership touts tax cuts and how it is bringing freedom to far-flung corners of the world, but even the most modest cynic could wonder if it is but a smokescreen designed to distract us from the growth of government and erosion of freedom right here at home.
        Finster
        ...

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