50 Years of Government Spending

[carlfense]

 

http://www.washingtonpost.com/blogs/ezra-klein/post/50-years-of-government-spending-in-one-graph/2012/05/16/gIQAFaloTU_blog.html

[It'sNotAFakeID]

Reasons to the trend in government spending should be self-explanatory. Give it another 10-20 years and the way government spends will probably look at least a little different.

[The Dude]

We need to take a chunk of that Safety Net money and put it towards space exploration.

[Mavric]

Interesting graph. I do think she was pretty off in her last paragraph, however:

 

It’s also worth noting that federal spending has, over the past 50 years, grown at a pretty similar rate to the rest of the economy. In 1962, the federal government spent $707 billion, accounting for 18 percent of GDP. By 2011, federal spending had inched up to account for 24 percent of the economy or, in dollar figures, $3.1 trillion.

 

She says that going from 18% to 24% is "inching up". That is growing 33% faster than the economy which hardly qualifies as "inching up."

[Excel]

International Affairs? Can't we just fly the women here?

[JJ Husker]

International Affairs? Can't we just fly the women here?

That would seem to make sense but Obama's secret service detail just won't buy into the idea.

[carlfense]

Interesting graph. I do think she was pretty off in her last paragraph, however:

 

It’s also worth noting that federal spending has, over the past 50 years, grown at a pretty similar rate to the rest of the economy. In 1962, the federal government spent $707 billion, accounting for 18 percent of GDP. By 2011, federal spending had inched up to account for 24 percent of the economy or, in dollar figures, $3.1 trillion.

 

 

She says that going from 18% to 24% is "inching up". That is growing 33% faster than the economy which hardly qualifies as "inching up."

6 percentage points over 50 years? How would you describe it?

[Mavric]

Interesting graph. I do think she was pretty off in her last paragraph, however:

 

It’s also worth noting that federal spending has, over the past 50 years, grown at a pretty similar rate to the rest of the economy. In 1962, the federal government spent $707 billion, accounting for 18 percent of GDP. By 2011, federal spending had inched up to account for 24 percent of the economy or, in dollar figures, $3.1 trillion.

 

 

 

She says that going from 18% to 24% is "inching up". That is growing 33% faster than the economy which hardly qualifies as "inching up."

6 percentage points over 50 years? How would you describe it?

You're falling into the same trap she is. You look at the difference between 18 and 24 and it doesn't look like very much. But it as given as a percentage of GDP so, if the economy and spending are growing at the same rate, that percentage would never change. But instead, spending is growing 33% faster than the economy.

 

A quick google search came up with the US GDP for 2010 at $14.5T. 6% of that is $870B. If you go back to your favorite graph about what caused the deficit, you could say that 67% of the deficit was caused by spending increasing faster than the economy.

 

Would you like to get 33% more of a salary increase than your co-workers?

[The Dude]

Would you like to get 33% more of a salary increase than your co-workers?

Ummm. . . yes, please!

[krill]

Surprised this wasn't posted:

 

http://www.marketwatch.com/story/obama-spending-binge-never-happened-2012-05-22

 

Growth of federal spending has slowed to the lowest rate in at least three decades during Obama's tenure. In short the spending binge is a myth and anyone capable of doing 6th grade math should be able to figure out the huge deficits are a result of a decline in tax revenue.

[carlfense]

You look at the difference between 18 and 24 and it doesn't look like very much.

Maybe because it isn't very much? Is it an increased percentage? Absolutely. Inarguably. On that we agree.

 

You think that an average increase of .12% per year is not "inching up." I think that it is.

 

I guess we have an argument over semantics.

[carlfense]

Surprised this wasn't posted:

 

http://www.marketwat...ened-2012-05-22

 

Growth of federal spending has slowed to the lowest rate in at least three decades during Obama's tenure. In short the spending binge is a myth and anyone capable of doing 6th grade math should be able to figure out the huge deficits are a result of a decline in tax revenue.

Can't be true. Obama is the biggest spender evarrrr.