Daily Archives: 11 December 2012

Spending

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Here‘s an interesting table, from The Motley Fool.

A couple of notes.  Spending in 2012, the fourth year of the Age of Obama, relative to our nation’s total economic output, our GDP, is up 18%.  The government spends nearly a quarter of our total economic production, production that by the government’s usurpation we in the private sector cannot use for our own ends.

Defense spending is down more than 17% from its long term average.  Even so, President Barack Obama is bent on gutting our defense capability by another half-trillion dollars, starting next month.  Never mind that al-Qaeda is resurgent across northern Africa, the Middle East, and western Asia.  Never mind that Iran is on the verge of a nuclear breakout.  Never mind that Russia and the People’s Republic of China both are increasing their own military spending and that the PRC, especially, is becoming increasingly aggressive militarily with their growing capability.

Welfare spending is nearly 9% of our GDP, up nearly two-thirds from a skosh over 5%.  Yet Obama wants to increase welfare spending even further.  I’ve written here about the trap that is welfare; one can only speculate about Obama’s motives for this.

Gimme

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Collis P Huntington, President of the Southern Pacific Railroad (among others) is reputed to have said

Whatever is not nailed down is mine.  What I can pry loose is not nailed down.

Via Spirit of Enterprise comes this AEIDeas article of charts illustrating the attitude from a different perspective.  Below, some of those charts.

The rate of entitlement growth per capita has been nearly twice as fast as per capita income growth for the last fifty years

Note: Derived by author on the basis of data on official transfers, price changes, and population change. Sources: US Bureau of Economic Analysis, US Dept. of Labor, US Census International Data Base

And

In the 1960s, the federal government spent $2 on governing for each $1 it spent on entitlement transfers. Today that ratio has completely flipped:

Sources: Derived from: Federal government entitlement transfers: Bureau of Economic Analysis, Federal Budget Outlays: White House Fiscal Year 2012 Historical Tables

And

Here’s where the money goes:

Sources: Bureau of Economic Analysis, US Department of Labor, Bureau of Labor Statistics, consumer price index

And

As the Welfare State has expanded, Americans are working less.

Source: Bureau of Labor Statistics, One Screen database, Labor Force Statistics, Series “LNU01300001”, “LNS12300001”

And there’s this from The Daily Caller:

After accounting for federal taxes, the median hourly wage drops to between $21.50 and $23.45, depending on a household’s deductions and filing status.  State and local taxes further reduce the median household’s hourly earnings. By contrast, welfare benefits are not taxed.

Now it’s the culture of dependency which the Progressives have created that is making the demand.  And President Barack Obama is prying ever more loose, actively abetted by an increasingly pliant Republican Party.