Comment 62623

By A Smith (anonymous) | Posted April 23, 2011 at 18:24:27 in reply to Comment 62622

According to the U.S. Bureau of Economic Analysis (BEA), inflation adjusted prices for the government sector went up by 18.25X from 1929-2010. In contrast, personal consumption (private sector) prices only went up by 10.58X in that same time period, while private investment saw price increases of only 6.47%.

In other words, the government sector was the WORST at cutting costs, by between 80-180%, compared to the U.S private sector.

If we assume that our numbers are similar to the U.S numbers, it explains why our economy has slowed as we have embraced "big government".

In fact, by not embracing smaller government, we will never attain the social safety net we all wish for. Think of it this way, would you rather have an economy with big government spending, but that created slow average increases to that public spending.

Or, would you rather have an economy with less public spending as a percent of the economy, but that created faster growing tax revenue, thus allowing for a faster growing public sector in absolute terms.

Are lefties willing to give up their hatred for those who produce the tax revenues who pay for their freebies? If so, they will be the big winners with better job prospects and better social services.

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