Friday, January 23, 2009

BY THE NUMBERS

Scary.

The Great Free Enterprise nation, the USA, is, in fact, one of the most government dominated sovereign territories in the world.

In the early 1900's, the US federal government consumed 2% of GDP.

It now consumes more than 20%, and that number will climb quickly to 25%.

In the first instance, a constitutional amendment allowed government to tax both personal incomes and corporate profits. That doubled the government stake to 4% before the First World War.

Oddly enough, defense spending, which seems so outrageous to many of us, has actually declined from 15% in 1952 to less than 4% in 2006.

"Social entitlements" however account for a huge amount of government, and one of Obama's most onerous challenges will be to severely cut from these spendings without harming the poor or alienating the the many hopeful who have elected him.

1 comment:

keith said...

it is time for the USA to join all other developed nations with a Value Added Tax.