Wednesday, September 10, 2008

Graph of the day


The government can't control it's spending:
The real news in yesterday's Congressional Budget Office semiannual report is that federal expenditures on everything from roads to homeland security to health care will on present trends reach 21.5% of GDP next year. That's a larger share of national output than at anytime since 1992. If the cost of the federal takeover of Fannie Mae and Freddie Mac prove to be large and are taken into account, next year federal outlays could be higher as a share of the economy than at anytime since World War II. In this decade alone, federal spending has increased by almost $1.2 trillion, or 57%.
Why should they get even more of our money?

I'd also like to note that, from 1993-2000, defense spending actually fell more than 20%, from 4.1% of GDP to 2.9%. Without these cuts, there would have been no surplus in the Nineties.

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