Currently there is much debate about increased government spending and the “alarming” growth in the National Debt we will be passing onto our children, grandchildren etc. The charts below show that federal spending as a percentage of GDP has gradually increased since the beginning of the 20th century, no matter which party was running Congress or the White House. The debt level has on the other hand, skyrocketed since the early 1980s (the last major recession).
Here is my message those who are complaining now: Please stop your hypocritical rhetoric about spending and debt while we are experiencing one of the worst recessions in US History. Thanks.
“The charts below show that federal spending as a percentage of GDP has gradually increased since the beginning of the 20th century, no matter which party was running Congress or the White House.”
Well, duh. Just one statist party–with Republican and Democratic factions–has controlled both Congress and the White House throughout the period, so what else should one expect?
“Please stop your hypocritical rhetoric about spending and debt while we are experiencing one of the worst recessions in US History.”
So apparently you’re okay with it? You think we can just continue in this same direction? Sheesh.
**So apparently you’re okay with it? You think we can just continue in this same direction? Sheesh. **
I’m not ok with it and while the direction needs to change, I don’t think right now during a major recession we are going to put a complete stop to a spending trend that has been occurring for over 100 years and a debt problem that has been growing for the last 30 years.
We’re accelerating at an unprecedented rate toward disaster, with the gas pedal all the way down, and when people object, your only response is that “we can’t just suddenly hit the brakes”?
**We’re accelerating at an unprecedented rate toward disaster, with the gas pedal all the way down, and when people object, your only response is that “we can’t just suddenly hit the brakes”? **
But you have to admit the number of people crying foul now appears to be far more than in the past.
If we weren’t experiencing a major recession, then I would agree. We’ve spent our way out of every other recession and depression (while of course increasing the debt).
What is different this time? What are the other ways? I’m for new ideas.
If stopping spending will get us out of this mess, then I’m all for it, but history shows otherwise.
“…a complete stop to a spending trend…”
We’re accelerating at an unprecedented rate toward disaster, with the gas pedal all the way down, and when people object, your only response is that “we can’t just suddenly hit the brakes”?
“But you have to admit the number of people crying foul now appears to be far more than in the past.”
Naturally. As I just said: “We’re accelerating at an unprecedented rate toward disaster.” If we’re accelerating much faster than in the past, I would certainly hope that we’d have more people objecting than in the past.
The charts go through 2008 and 2007. The acceleration was already happening.
“But you have to admit the number of people crying foul now appears to be far more than in the past.”
Naturally. As I just said: “We’re accelerating at an unprecedented rate toward disaster.” If we’re accelerating much faster than in the past, I would certainly hope that we’d have more people objecting than in the past.
So, if the rhetoric is not hypocritical, you are okay with it? For those of us that are opposed to government spending and increasing debt regardless of the party in charge in Washington, we are free to continue pointing out how utterly useless and costly the current actions by our elected and unelected officials in Washington are? Great. Thanks for your approval.
“What is different this time? What are the other ways? I’m for new ideas.”
If you’d like to find the potential way out, you need to come to understand what makes the boom-and-bust business cycle happen in the first place. (The 58-page section titled “Inflation” on my website gives a bird’s-eye view.) Once you’ve grasped that, it becomes clear that in a situation like the present one, there’s a shifting of misallocated resources that needs to take place in the marketplace, and that pumping a lot of money into the economy at that point merely delays that process. At best, that money-pumping (“inflation” in the original sense of the word) stimulates a recovery in the very sectors which were already overinvested, but after that the effects of the malinvestment come back with a vengeance.
So does that mean the solution is to do nothing? Not unless one believes in political reductionism, but that’s another topic.
I don’t approve it, I’m just pointing out the facts of spending and debt in US history and that those who are acting as if they want nothing to do with it are using rhetoric and hypocrisy (the combination is doubly irritating). Spending and the debt are out of control and we need to change, but we can’t abruptly call for no more spending during a major recession.
So, if the rhetoric is not hypocritical, you are okay with it? For those of us that are opposed to government spending and increasing debt regardless of the party in charge in Washington, we are free to continue pointing out how utterly useless and costly the current actions by our elected and unelected officials in Washington are? Great. Thanks for your approval.
You are saying because spending and debt have been increasing for a long time, that we should not complain about it?
I do not follow…
Here is my message those who are complaining now: Please stop your hypocritical rhetoric about spending and debt while we are experiencing one of the worst recessions in US History. Thanks.
Have we spent our way out of recessions each time?
Or, do recessions just end eventually no matter what, and politicians spend when they happen no matter what?
If we weren’t experiencing a major recession, then I would agree. We’ve spent our way out of every other recession and depression (while of course increasing the debt).
What is different this time? What are the other ways? I’m for new ideas.
If stopping spending will get us out of this mess, then I’m all for it, but history shows otherwise.
“…a complete stop to a spending trend…”
We’re accelerating at an unprecedented rate toward disaster, with the gas pedal all the way down, and when people object, your only response is that “we can’t just suddenly hit the brakes”?
I have no problem with legitmate complaining, but so many inside and outside of Washington have been all but mute on the problem until now, during a major recession.
First, what are the other plans we have to get us out of this recession? Doing nothing seems pretty risky, too. Once we are through this, then we need to tackle the out of control spending/debt problem.
I’m trying to understand your logic here.
You are saying because spending and debt have been increasing for a long time, that we should not complain about it?
I do not follow…
Here is my message those who are complaining now: Please stop your hypocritical rhetoric about spending and debt while we are experiencing one of the worst recessions in US History. Thanks.
If you have been a critic of government spending and debt all along and have been worried about passing it on to your children and grandchildren, then you are neither.
If you know that halting spending is the answer, then you have knowledge that our economic response to recessions in the past has ignored.
So if I say that government spending and debt is harmful and should be stopped even during a recession then I’m using rhetoric and being hypocritical.
But you can say that during a recession is the wrong time to call for a halt in government spending and that is okay.
What am I missing? Why is your position fine and my position hypocritical?
What is different this time? What are the other ways? I’m for new ideas.
Just because nothing is different this time does not mean what we did the FIRST time was the right thing to do.
As Rob said, when we have recessions it’s to “Readjust” to to something wrong in the market place…my laymen’s terms. Historically what we’ve done is try and keep that correction from happening rather than allowing the adjustment. Some administrations take the “We can fix it” more seriously than others.
The end result is that the market is not allowed to “Readjust” to it’s natural level and ends ups “Readjusting” to where the “fixers” want it to be. Odds are that place and it’s natural place are not the same. We then end up “Rebuilding” the economy on a shakier and shakier platform after each recession and each recession is more likely to be a major one that needs major fixing or simply major correction.
“The charts go through 2008 and 2007. The acceleration was already happening.”
Yes, in fact they indicate it’s been happening since at least 1980, and arguably since the beginning of the twentieth century. So? The faster the debt and spending rise, the more people complain.
Of course, some of us had enough foresight to see where this was taking us quite a while back, and we’ve been objecting vociferously all along, regardless of which of the two branches of the statist party was in charge. I guess that makes us “hypocrites” in your view. Weird.
I’m almost tempted to speculate that you think it’s a party-line argument, but for the time being I’ll give you more credit than that.
The charts go through 2008 and 2007. The acceleration was already happening.
The only chart that goes thru the end of 2008, the point at which the bailout happened is the first one on the budget. Keep in mind that 700B was spent in 08 and additional funds in 09. My guess is that the first chart does not reflect Obama’s current budget but rather the “Projected” budget from Bush.
A few numbers. At present Obama’s proposed budget is around 3.6 Trillion. The 2007 actual budget was 2.7 Trillion. That’s around a 33% increase. 3.6 Trillion, assuming 2009 GDP stays stagnant around 14.2 trillion, would be 25% GDP. This does not include the additional spending for “Bailouts”.
I’m also question what data is included in the first graph, whether it’ total government spending or federal. Most sources I’ve seen have % of GDP historically much lower around 18-20%. In fact a little further research shows that the graph you posted includes ALL government spending including state and local. What we are now talking about is that the FEDERAL budget is equal to ALL government spending and did so in a matter of 2 years.
