"In 2000 spending was 18.2% of GDP. In 2007 it was 19.6%. But in the three years since 2009 it's jumped to an average of 24.4%.
Second, and perhaps even more striking, the chart shows that Mr. Obama, in his budget submitted in February, proposed to make that spending binge permanent. Spending would still be more than 24% of GDP at the end of the budget window in 2021. The administration revealed its preference in the February budget for a much higher level of government spending than the 18.2% of GDP in 2000 or the 19.6% in 2007.
Third, the House budget plan proposed by Rep. Paul Ryan (R., Wis.) simply removes that spending binge—it gradually returns spending as a share of GDP back to a level seen only three years ago.
When I show people this chart they ask why Washington is even having the debate. They say: If government agencies and programs functioned with 19% to 20% of GDP in 2007, why is it so hard for them to function with that percentage in 2021, when GDP will be substantially higher and with many opportunities for reforms and increased efficiencies? And if GDP and employment grow more quickly, as they would if private investment increased as a result of lower government spending and debt, then that 19%to 20% share of GDP could provide much more in the way of public goods."
Sunday, April 24, 2011
How Much Has Federal Spending Increased In The Last 10 Years?
See Obama's Permanent Spending Binge By JOHN B. TAYLOR in the WSJ, 4-22-11.
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The spending was at 25% of GDP with the last Bush Budget, I don't know where you get your facts from but the Office of the White House budget estimates the budget in 2015 to be 21.4% of GDP. You forget that the Bush tax cuts of 2003 gutted the revenue of this country and we have not got even close to the percentage of Revenue needed to meet the spending. Our revenues were at 14.6% of GDP in 2009 and have now climbed to near 17% for 2014. It is lack of Revenue i.e. tax cuts that are killing this country. By the way estimated spending stays at 21.4% until it drops to 20.9 in 2018. So you either have misinformation or you are lying.
ReplyDeleteJFK, Reagan, and Goerge W. Bush understood, reducing taxes has a stimulative effect on economic activity which leads to an increase in government reciepts. You can’t argue with history! Liberals are simply oppressors.
DeleteThanks for dropping by and commenting
DeleteFirst of all, this was posted in April 2011. Things may have changed. And where do I get my numbers from? A WSJ article by a top economist, John Taylor of Stanford. And then you accuse me of lying and you don't even say what your real name is
ReplyDelete