Tell me again how we are going to get a smaller government in November


Federal Spending (Click to enlarge)

I think the more significant cause, however, is the general one–a growing conviction that America is governed by a political class that has its own agenda, involving its own enrichment as well as the endless expansion of its own power, and that this political class is contemptuous of the opinions of ordinary Americans and is determined to impose its will regardless of how Americans vote. I think this perception is in fact true.

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15 Responses to Tell me again how we are going to get a smaller government in November

  1. Locke n Load says:

    Every time I see a graph of federal spending it disheartens me. The point of this guys post is right on, we have lost faith in the “representative” part of our government because we all know, instinctively, that graph is correct. Sure, Reagan ramped up spending but it was military growth designed to bankrupt the Russians in an arms race. He also raised tax revenue significantly to cover those costs down the road. What happened next is the true beginning of the end of ALL america’s faith in congress. As the left lost it in the 60’s (their faith), we lost it watching OUR people take the increased revenues and continue to spend on NEW programs while abandoning the original plan that the supply siders advocated. Spend now, cut taxes, pay down later. Instead the vote buying machine marches on…

    A fantastic ocounterpoint for this chart would be tax revenues as a percentage of GDP vs spending. For 80 years it has remained fairly constant at 18-19%. What sets the Obama agenda apart from the rest is exactly how much more debt he plans tpo pile on while killing revenue creation. Every policy he is jamming through is anti-business, anti-capitalist, anti-growth, hell, anti-anything-good. There is simply no way the tax revenues can keep up with his spending even if he raises them to 70%. The result is obvious to any beginner student of economics: a debt burder that will crush productivity, job creation, and the competitiveness of our country for decades. It’s the progressives suicide pact with america. You just take this little earmark I’m offering and in return, you agree not to bitch too much about the tax hikes. When it all comes crashing down, don’t worry, you’re one of the “favored” people, we’ll protect yoiu…

  2. Locke n Load says:

    There is an answer to all this madness but its a political hail mary. We have to constitutionally tie spending to revenues and only after we restructure the tax system. I get tired of the funny looks for being called a dreamer on this but its true. A flat or Fair tax combined with a restructuring of the social service taxes CAN get the country straightened out. The only problem is nobody wants to do anything ‘drastic’ until the friggin house is on fire. Oh sure, then everybody thinks fire alarms and extinguishers are a great idea…

  3. notamobster says:

    LNL: check it out. 11.2% in 2005. It’s probably more like 3.5% now!

    http://www.nationmaster.com/red/time.php?stat=tax_tax_rev_of_gdp&country=us&b_printable=1

    Oh, when the house catches fire, they’ll break windows and steal shit because their free money will be cut through austerity measures.

  4. Locke n Load says:

    Nota, agree with your looting scenario,lol.

    Regarding the rest I think we’re playing an apples and oranges game here.
    The numbers according to usgovernmentrevenue.com suggest fed taxes collected as % of GDP amounts to 14.77% which is I think what you were driving at, lower productivity and smaller workforce=lower income. intuitive, good. My point however is that the govt is attempting to crank that number back up with new taxes and increased existing taxes but at the same time is ramping spending through the roof. The spectacular deficits they are running will outpace any attempts to collect more revenue because as you pointed out, they are destroying the tax base.

    There was a great article about this just the other day. I’m going looking for it

    great site btw, RD was gracious enough to turn me onto it when I was trying to create an interactive chart for our readers. http://www.usgovernmentrevenue.com/

    if you have the time to get into it be prepared to lose some hair. its terrifying.

  5. Locke n Load says:

    on a side note, I used to laugh at the Canadians for their crazy tax rates and think we’d never see them. We’re now only 5% away according to wiki. At least we’re not Germany…

    http://en.wikipedia.org/wiki/List_of_countries_by_tax_revenue_as_percentage_of_GDP

  6. notamobster says:

    Did I get the wrong chart? I thought that one was tax revenue as a percentage of GDP???

    I like words. Numbers fuck me up!

    Math is the universal language, but it sure seems to be as easy to use for obfuscation as words.

    I seriously suck at economics. I can do head math with the best of em, but your start adding variables and I’m sooooo lost!

  7. Locke n Load says:

    Tax rev vs gdp was right but I added the VS SPENDING part,lol. What bugs me is I can go to several sources and get different numbers every time.

    Simple point I was making and RD would have done this much better of course:
    if tax revenues are a stable % of GDP, despite the tax rates, what makes these jokers think that if they crank up the spending the debt won’t explode? Corrollary is obvious. As Laffer wouold predict, raising tax revenues at this juncture would have a negative effect on growth, production, and labor rates so NO new revenues will be created to offset the spending. As our GDP is in a rut we can’t raise that side of the equation either. Ergo, exploding debt.

    Now, what that means if its true is that although we’ve had tax cuts and hikes in the past, we’ve almost always had a stable predictable revenue stream to manage spending. What isn’t so obvious is that in times of tax CUTS we grew the rate more and had the opportunity to pay down debt or cut spending to really hammer the debt. We didn’t. Every time a republican cuts taxes and increases revenue we find a new way to SPEND the funds. Medicare part D anyone?? Iraq and Afghanistan? The key of course is to CUT SPENDING and DROP TAX RATES simultaneously.
    The bitch of it is those tax revenues mean nothing to most of congress except votes. More dollars, more places to buy people off.

  8. Locke n Load says:

    Oh, and that chart you gave had no explanation of what revenues it was using in the data. The site I posted breaks it all down by sector, fed and state. Figures RD would have that one bookmarked,lol.

    One last note regarding the need to have the house on fire before we appreciate fire extinguishers. There is an old saying:
    When the student is ready, the teacher will appear.

    Think we’re ready?

  9. LittleTimmy says:

    The Republicans have spent too much many, shamefully. But not as much as the Dems, who spend without shame. I’m going to give the Republicans another chance this fall. If they win big and don’t have an impact on spending, I will have wasted my vote. And if I “waste” my vote in 2010, I will “waste” my vote on a 3rd party in 2012.

  10. R.D. Walker says:

    Tell your children to get government jobs…

    So much for that old saw that government employees are being paid less than the rest of us so they deserve better benefits.

    The Los Angeles Times revealed in a front-page story that Bell City Manager Robert Rizzo is paid a salary of nearly $800,000 a year. His contract calls for annual increases of 12%. That means his one-year increase in salary next year will be over $94,000.

    If he stays with the job – and why wouldn’t he – and the contract doesn’t change, the city manager of a city with a 37,000 population will be making more than a million dollars a year in a couple of years.

    Highly paid public administrators in Bell don’t stop with the city manager. Police Chief Randy Adams pulls down $457,000 a year. The Times article points out that salary is 50% more than the yearly salary of the Los Angeles police chief and L.A. County sheriff.

  11. notamobster says:

    That is exceptional RD! I am SOOOO getting a government job! WHAT A CROCK OF SHIT! The fools in Bell City, need to have their bells rung.

  12. James says:

    What needs to happen is a new president granting pardons to tax cheats. This is the tool against Congress. When Congress doesn’t cut spending by another third, free another round of cheats.

    Soon everyone will understand paying taxes is voluntary.

  13. BrunDawg says:

    I think the excuse for such a large government is that 0bama was on vacation during his term as president and frankly didn’t know about it. After all, it didn’t receive much media attention.

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