Home > Ezra Klein, Federal Reserve, Paul Krugman, Stimulus > Where’s the Rise of Big Government We’ve Been Hearing About? ctd

Where’s the Rise of Big Government We’ve Been Hearing About? ctd

Again, where and when did the switch to socialism happen? I can’t seem to find it in the data… Hmmm…. Also, where was the massive increase in spending for stimulus?

Total Government Spending (all levels of government):

DESCRIPTION

The only way you see a massive increase in government is if you only look at short term federal government spending AND ignore the fact that GDP collapsed because of the recession. Yes, taxes coming in are much less because of cuts and because of the recession – that’s what’s really causing the short term deficit.

We’re not going bankrupt because we’re spending too much on infrastructure or any such nonsense. It appears we’re still short about $2 Trillion for infrastructure (well, according to some reports anyway).  Entitlements need to be reformed, the tax base increased, and we need to find a way to increase economic growth. Maybe the Fed actually intends to try something new now.

(graph via Krugman)

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  1. Bill Sowka
    October 15, 2010 at 5:13 pm

    Dan, Would love you to consider writing an article on corporate donations, campaign financing, and the Supreme Court Citizens United Amendment. Corporate political influence, to me, is one of the greatest threats to our freedom. Some will lead us to believe that it is socialism…but wait until the Tea Party gets a taste of oligarchy.

  2. October 15, 2010 at 5:29 pm

    Will do.

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