Obviously, this upward trend was placed on steroids when the downturn began. For starters more than $13 trillion has been spent, lent, printed or pledged on “recovery” efforts alone over the last two-and-a-half years. Also, Washington’s two most recent federal budgets have added more than $3 trillion in deficit spending to our skyrocketing national debt, with trillions of dollars in additional red ink projected over the coming decade.
Accordingly, when we add post-2007 spending to the total tab for the decade, the government growth rate has more than doubled — to 52.4 percent.
By comparison, total government spending in the 1990s grew at a much slower rate — by approximately 17.4 percent — which enabled more economic activity and the creation of more wealth up and down the socio-economic ladder. In fact, per capita personal income during the 1990s grew by 23.6 percent, adjusted for inflation. By comparison, per capita personal income during the first decade of the new millennium has grown by only 4.6 percent — a sad testament to the failure of the Keynesian philosophy that Washington continues pursuing with reckless abandon.
This is not rocket science, it is common sense. The more government grows, the more the economy suffocates. Conversely, the more government contracts, the freer we will be as a nation to prosper.