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Wednesday, August 26, 2009
Michael Medved :: Townhall.com Columnist
The Spending Sickness Makes for Unhealthy Reform
by Michael Medved
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Will Congress pass Obamacare by the end of the year?

Government at all levels now eats up twice the share of the national economy it consumed 60 years ago. Are the government services you receive twice as valuable?

That challenge should become the key question in the ongoing battle over Obamacare. Given the obvious tendency of government to spend more and more with no discernable benefit to the public, why should anyone expect a better result from a huge expansion of the federal role in medical care?

Culture of Corruption by Michelle Malkin FREE

The numbers already tell a horrifying story about the reckless expansion of government. In 1951, despite the bloody and costly burdens of the Korean War, spending for federal, state and local governments consumed 22.38% of the total American economy, as measured in Gross Domestic Product (GDP). This year (2009) government at all levels will spend at least 45% of every dollar American individuals and industries manage to earn an all-time record for peacetime, approaching the 52.97% that governments used in 1945 at the very height of World War II. To put the current number in perspective, Lyndon Johnson drew near universal condemnation for his irresponsible guns and butter budget of 1968, with bloated government programs to back his Great Society schemes at the same time we supported more than a half-million fighting men in Vietnam. LBJs spending (which helped cost him the presidency) never exceeded 30.46% of GDP; Obamas, at an estimated 45.19% this year (without Obamacare!) is some 50% higher!

How has the public gained from this appalling increase? What aspects of our lives have improved due to expensive new government programs since 1951, or even 1968? In other words, what have we bought with all the trillions and trillions of increased spending?

Before attempting to answer that question, its important to clear away two lies frequently used by liberals to confuse the public on this all-important issue.

DEMOCRATIC LIE NUMBER ONE

The first lie suggests that the chief reason for higher governmental spending involves vast increases in money for defense, wars, foreign aid and other programs related to national security.

In fact, this security spending hasnt gone up at all as a share of the national economy its actually decreased sharply in recent decades and the wars in Iraq and Afghanistan brought only relatively minor increases. In 1951, with overall government spending less than half what it is today, the defense budget was nearly twice its 2009 level. (9% to 4.7%). In other words, military spending as a percentage of all governmental spending is today only one-fourth what it was sixty years ago.

In 1968, due to Vietnam, military spending rose to 9.8%. That number (of defense spending as a percentage of GDP) came down after the conclusion of the war in Southeast Asia, and sank to a modern low of 3% under Bill Clintona level criticized by many military planners as irresponsibly low. Defense spending has increased steadily since then (to an estimated 4.7% this year) under the pressures of the War on Terror. The defense budget nevertheless remains historically low far below its levels under Eisenhower, say, or Kennedy, or Reagan (6%). In explaining the outrageous increase in federal, state and local spending, its obvious that defense and international entanglements had nothing to do with it.

The main cause for the doubling of governmental expenditures involves three areas of inexorable expansion: entitlements, social programs and bureaucracy. Since Obama care would bring dramatic additional growth in all three areas, its important to consider the way that previous boosts for relevant federal, state and local budgets utterly failed in improving governmental efficiency or effectiveness. If theres a single governmental program that has steadily improved over the last sixty years (while budgets steadily enlarged) I cant think of it. Public education offers an especially dispiriting example, with per-pupil spending nearly tripling and relative performance showing either alarming declines or a disappointing lack of positive results.

DEMOCRATIC LIE NUMBER TWO Continued...

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About The Author
Michael Medved's daily syndicated radio talk show reaches one of the largest national audiences every weekday between 3 and 6 PM, Eastern Time. Michael Medved is the author of eleven books, including the bestsellers What Really Happened to the Class of '65?, Hollywood vs. America, Right Turns and, most recently, The Ten Big Lies About America.
 
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The Obama Timeline
Great article, thanks!

The Obama Timeline is now in print: 660 pages of hard-hitting, well-referenced evidence against the current temporray resident of our Oval Office.

The Obama Timeline is available at your favorite online bookseller.

http://www.colony14.net

Sheldon
Uhh, you might want to re-think that, based on the record:
consider the recent record of Paul Krugman.

•"right now it looks as if the economy is stalling..." — Paul Krugman, Sept. 20th, 2002


•"We have a sluggish economy, which is, for all practical purposes, in recession..." — Paul Krugman, May 29th, 2003


•"An oil-driven recession does not look at all far-fetched." — Paul Krugman, May 14th, 2004


•"a mild form of stagflation - rising inflation in an economy still well short of full employment - has already arrived." — Paul Krugman, April 18th, 2005


•"If housing prices actually started falling, we'd be looking at [an economy pushed] right back into recession. That's why it's so ominous to see signs that America's housing market ... is approaching the final, feverish stages of a speculative bubble." — Paul Krugman, May 27th, 2005

(Yes, I know it's cut and paste - Still HIS words.)
There's an old saying: "Even a stopped clock is right twice a day".
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