One measure of the government’s size is government spending as a share of gross domestic product. The OECD has released new data (Table 25) on this measure for 31 member countries, which I chart here for 2015. The spending includes all levels government: federal, state, and local.
The Washington Post today discusses how presidential candidate Donald Trump is dismissing the need for major entitlement reforms. The paper noted, “… leading Republican presidential candidate Donald Trump railed against proposals to end or significantly change Medicare.”
During the 1980 presidential campaign, Ronald Reagan famously said “there you go again” when responding to one of Jimmy Carter’s attacks. Well, the Gipper’s ghost is probably looking down from Heaven at the new budget deal between congressional leaders and the Obama Administration and saying “there they go again.”
Canadian federal elections yesterday ousted the ruling Conservatives under Stephen Harper and replaced them with the Liberals under Justin Trudeau. The Liberals have promised to increase taxes on high earners, ramp up spending on government infrastructure, and purposely run deficits to supposedly stimulate the economy.
Cato has released a brief study on the earned income tax credit (EITC). The EITC is a huge program. In 2015 it will provide an estimated $69 billion in benefits to 28 million recipients.
The federal government spends almost $4 trillion a year. It has hundreds of agencies and runs more than 2,300 subsidy programs. It employs 2.1 million civilian workers, 1.4 million uniformed military personnel, and 560,000 postal workers. It is a huge organization.
The federal government spends hundreds of billions of dollars more each year than it collects in taxes. Those large budget deficits are financed by issuing growing amounts of debt. Federal debt now totals more than $13 trillion, or about $107,000 for every household in the nation.
A new poll by the Peter G. Peterson Foundation finds that 80 percent of Americans think that rising federal debt should be a top priority of policymakers
Interstate 35 between San Antonio and Austin is congested, so obviously (to some people, at least) the solution is to run passenger trains between the two cities. Existing tracks are crowded with freight trains, so the Lone Star Rail District proposes to build a brand-new line for the freight trains and run passenger trains on the existing tracks. The total capital cost would be about $3 billion, up from just $0.6 billion in 2004 (which probably didn’t include the freight re-route).