Just a reminder that the size and scope of government in the U.S. today would have been beyond the imagination of the founding father. Up until the early 1900s we citizens took limits on government power seriously. In 1900 federal spending was 2.8% of GDP, Gross Domestic Product, while state and local spending was about 5% of GDP. As of 2014 federal spending was 21.2% of GDP while state and local was 11.5%. That is a total of 33% of GDP. Government spent one third of the total GDP in 2014. That is one third of a total GDP of 17,416.25 billion U.S dollars. According to a growing body of economic evidence bigger government means slower growth of real GDP and once the total government spending as a percentage of GDP reaches a tipping point, (estimated to be from 15% to 25% of GDP, additional government expansion crowds out private productive investment and slows economic growth. Gwarthney, Holcombe, and Lawson found that a key issue playing an important role in promoting economic growth and economic freedom was secure property rights. Ring any bells about the actions of the EPA regulations? Regards, Jerry
Posted on: Tue, 20 Jan 2015 00:06:57 +0000
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