Changes in government spending

You can see how things have changed. We were poorer in the past with poorer technologies. Yet that was the decade that we put a man on the moon and brought him safely home. Yet is was in those years - and before - that we build much of the highways, dams, sewer systems & ports we still use today. In fact, one of our big challenges is to renew our heritage.

If they could build all that stuff back then with less money, why can't we do it now with so much more. Look at how we spend our money and it might give you an idea.

It is hard to read the charts, so let me give you the high points. We spend LESS as a % in interest than we did in 1960. Spending on defense DROPPED from nearly half the total in 1960 to less than twenty percent today.

Just wait until we start paying those big ObamaCare bills.

Of course Democrats don't care about spending. Many think there is no spending problem and the Democratic proposal for the budget is to NEVER balance it. In other words, the Democrats are comfortable with debt now and forever until there is no America anymore, which may come sooner if we don't ever get out of debt.

Posted by Christine & John at March 12, 2013 7:48 PM
Comments
Comment #362744

Right Jake. I developed an idea circa 1900 or thereabouts. The Panama Canal, Amnesty #1, and NAFTA were pretty strong indicators that the world was headed toward globalization. That, followed by the secret quest for an NAU, CAFTA and all the AFTA’s. and the loss of millions of the better jobs helped meld the idea into the real deal. Corpocracy would lead the way to a globalised economy. The US worker would be treated as ‘a worker of the world’, no more, no less.

Corpocracy would work to ‘normalize’, ‘harmonize’ regulations/laws around the world to achieve super efficiency in every facet of commerce/banking/gov’t. For example, the ‘globalised’ rule is that small knives can now be carried on US passenger aircraft, whether the US folks like it or not.

Harmonizing US worker wages is going to take a while yet and carries some risk as to whether we can achieve a ‘soft landing’ somewhere downstream. Trillions have been expended to ensure US corporations remain solvent while putting extreme pressure on worker wages. Corpocracy has succeeded, probably beyond their wildest dreams at this point, in that US corporations are ‘dug in’ around the world, realizing super efficiency to the point where production is at a level where fewer workers are required. For example, the stock market is at a historical high while 25% of the work force is idle. Amnesty #2 can’t be far off and that should create a renewed surge at the Southern border bringing more cheap labor. Seems a given that corporate taxes will be lowered during Obama’s legacy years.

Workers are being sucked in to the maw of the Corpocracy thru the offering of supposedly free stuff. Gov’t is throwing money at every kind of entitlement, college grant funds, etc, giving the recipient a feel good moment while sticking the ‘tax paying citizenry’ into a deepening quagmire of debt. Corruption is rampant in every aspect of society while the Corpocracy moves legislation for more monopoly/conglomeration re Dodd-Frank and similar.

A fellow goes to the hospital thinking he may be having a heart attack. The hospital runs a few tests and sends him home with a diagnosis of heart burn and a $21k bill, etc. College loan debt now large than the combined credit card debt of the nation. Anyone with a $10 calculator should know that we ain’t going anywhere any time soon with a $20T federal debt and a GDP growth expectancy of 1-2%. Actually, that’s not right, we are assured of going to hell in a hand basket based on the numerology.

Main reason we can’t make a comeback Jake, is Corpocracy, greed, corruption, gullible folks who want free stuff, Some believe that if the President sticks to his guns on closing WH visitation we can turn things around. Others believe that if the Reps can defeat Obamacare that is the ticket to prosperity. I believe that the only way we can restore to something like your article relates is thru a new 3rd party w/a/diff/pol/att, designed to abolish corporate personhood law and implement REAL campaign finance reform. A Senator seat is going for about $10.5B and looking to be worth $50B in the not so distance future.

Otherwise, we have theCorpocracy we deserve.

Posted by: Roy Ellis at March 12, 2013 9:01 PM
Comment #362745

Well, if one wants to quibble, change the $B to an $M re Senate seat.

Posted by: Roy Ellis at March 12, 2013 9:10 PM
Comment #362751

Our money was worth a lot more back then. Since the Federal Reserve Act was enacted our current dollar is the equivalent of 4 cents in that period. Inflation has taken 94 percent of our purchasing power away from us.

Consider this: With the improvements made in production and technology why isn’t our dollar able to purchase more instead of less? With more efficient production and greater technological achievements during the last century that lower costs, shouldn’t our dollar buy more, not less?

The Federal Reserve is taxing our money incognizant of the American people. That is, in part, why more money is needed to achieve the same goals.

Posted by: Weary Willie at March 13, 2013 3:56 AM
Comment #362766

First, what do you think put a stop to years of public works and other spending priorities? That’s right, conservatism, which says that we should just hand back all those tax dollars, and coast on what infrastructure we already have!

Second, you know that graph is unreadable? Just saying.

Third, what room do you have to criticize? You’ve been on this sight for as long as I have, and never criticized the money not taxed or offset to cover Medicare’s coverage expansion. At least not until Bush was out of office.

And I know why: Because Bush was imitating Reagan’s fiscal policies. I think the clash here is between Reagan’s fantasy of fiscal policy, and reality, a reality Reagan actually faced better, since he was not dedicated to the dogmas of his party to the exclusion of reason.

You folks approached Bush’s spending and tax cuts as a politically acceptable form of Keynesian stimulus. You know what the dirty little secret is? It still is politically acceptable to both cut taxes and increase spending in Defense categories, or other politically correct places. Republicans haven’t reformed, they have simply scapegoated Democrats for the budget shortfall their policies created.

And so, if you folks get your way, I guarantee deficits will go up again, and it will be, like before, fairly hard to reduce them.

The people should realize at this point that Republicans policies don’t cut federal outlays in reality, they just shift them in a different direction.

Ultimately, you folks aren’t the thrifty people you pretend to be. You’re just more sure of yourselves, despite your incompetence with fiscal policy, a dangerous combination.

Posted by: Stephen Daugherty at March 13, 2013 8:47 AM
Comment #362770

If they could build all that stuff back then with less money, why can’t we do it now with so much more.

Cause the idiots we have in DC now need to line their pockets with most our money.

Posted by: Arkie Redneck at March 13, 2013 9:08 AM
Comment #362775

I get the 500 members times 150,000 apiece, or about 750 million.

It’s a red herring. The real problem is that Republicans won’t come to any compromise on stimulating the economy that results in Keynesian spending being validated, even if they themselves believe the need is there. Being oppositional and obstructionist has overwhelmed the ability to agree on basic things when there are no other objections than the ideological. Obama must be wrong, so infrastructure work won’t be initiated, just to spite him.

Oh, and by the way: we have the market we have. Materials and resources, standards and labor costs have risen. The market wasn’t going to stay the same as Americans became richer. To expect that was to scoff at the more sensible parts of Adam Smith. There’s a reason folks in China and Vietnam and other places are demanding higher wages: as an economy gets richer, prices go up, and so must wages to keep up. Trying to keep wages down arbitrarily, in an uncompromising manner, will just make the problem worse. Not everybody can work at Wal-Mart, and those who do can’t necessarily afford enough things to make Wal-Mart profitable.

Posted by: Stephen Daugherty at March 13, 2013 10:12 AM
Comment #362777

“…a reality Reagan actually faced better, since he was not dedicated to the dogmas of his party to the exclusion of reason.”

Agree, Stephen. Reagan’s actual policies were far more pragmatic than his rhetoric. Unfortunately, it is the rhetoric of Reagan that is remembered.

Posted by: Rich at March 13, 2013 11:06 AM
Comment #362780

Many thanks C/J for the graphs above. It is difficult to understand that spending for Education, Welfare and Housing was 4% of the budget in 1960 and rose to 11.1% in 2010. Are we that much better off today than we were 50 years ago? I have no doubt that I received as good, or better, an education in the 40’s, 50’s and 60’s as a student is receiving today.

I believe the poor were as well fed and housed then as now. And, believe it or not, the poor did not walk around naked or starving back then.

A jump from 2.9% to 25.1% in Health Care (including Medicare) surely makes one pause…and wonder why. Are we really that much more healthy today? I don’t believe so despite the enormous sums being spent.

Posted by: Royal Flush at March 13, 2013 11:29 AM
Comment #362783

“If they could build all that stuff back then with less money, why can’t we do it now with so much more”

Because of our governments constant movement to the left.
When people expect government to do things for them and to provide for them, government must grow larger and spend more.
As government grows larger and spends more, the people become dependent on government, a false sense of entitlement is formed and rights and freedoms are lost.

Fact is, smaller government=less spending=less taxes=more freedoms.

Posted by: kctim at March 13, 2013 11:55 AM
Comment #362789

Royal Flush-
No, the numbers are demonstrable. The poor have a much better standard of living. As for the cost of healthcare? That’s primarily a result of private healthcare practices using technological, medical and pharmaceutical advances as an excuse for criminal levels of overcharging. You can pretend government is the reason for that, but then you’d have to explain why the government consistently deflates the excessive charges of the hospitals.

kctim-
Constant movement to the left, eh?

Isn’t it funny that despite years worth of Republican dominance in politics, particularly on fiscal matters, that it’s the left’s fault things are so bad?

The problem is, much of the original conservative movement was based on the notion that liberals were ruining everything; that’s what gave them their motivation. But when they got in charge, guess what? It still had to be liberals at fault, so politicians would either get corrupted by liberalism, or the liberals would ruin their perfect little world of policy.

There was a time when conservative policy had other bases, other foundations, but unfortunately, nowadays, it’s about governing incompetently, and then shifting the blame onto the Democrats to maintain power.

As for the rest?

The world isn’t an equation, and even the best-intentioned politics can mutate into bringing results the original proponents never dreamed of.

This is especially quick to happen if people if history is constantly rewritten to avoid uncomfortable truths.

Posted by: Stephen Daugherty at March 13, 2013 6:21 PM
Comment #362790

Stephen

Re the graph being hard to read - sorry. Increase your resolution. I could read it; so can you.

RE infrastrcture - I think Obama could find lots of allies among conservatives if he would actually build infrastucture. In fact, part of my posts in recent times has been to complain about the Obama incompetence. We spend lots more money but cannot manage to build very much. “Investing” in firms does not count as infrastructure.

We used to build things much faster. It was not a liberal thing. Hoover Dam was started and mostly finished during the time of Republican dominance. They call it Hoover Dam because president Hoover started it. Mount Rushmore started under Calvin Coolidge. Eisenhower got the interstate highways started.

What I object to is the waste of money. Cash for clunkers is not infrastructure. Universal day care is not infrastructure.

Posted by: C&J at March 13, 2013 6:26 PM
Comment #362791

SD writes; “That’s primarily a result of private healthcare practices using technological, medical and pharmaceutical advances as an excuse for criminal levels of overcharging.”

To a degree that is correct. And, a majority of patients demand the most expensive treatments or, at the very least, don’t ask their care provider about less expensive alternatives that may be just as effective. And, there is no incentive to limit how much care they demand even for trivial conditions.

When patients don’t have to write a check (other than perhaps just a low deductible) for their health care because they have good health insurance they lose interest in the actual cost of that care. There is simply no incentive for the patient to be cost conscious.

Posted by: Royal Flush at March 13, 2013 6:41 PM
Comment #362792

C/J…”Cash for clunkers is not infrastructure.”

You won’t get SD to agree with that I’ll wager.

Posted by: Royal Flush at March 13, 2013 7:13 PM
Comment #362795

IMF and US tell China to ‘focus on consumption and income’. Nation building with a globalists twist by the NWO, IMO.

In 09 congress promised a loan of $65B to help fund the IMF. Now that the country is sure that an $85B cut in spending will ‘devastate’ the US the Corpocracy is trying to deliver the promised funds to the IMF via the back door but congress is a little skittish.

IMF Infrastructure:

From a WaPo article: “Even as it ups the permanent U.S. pledge to the IMF, the administration wants to rescind a temporary loan in the same amount that it extended in 2009 as the global economic crisis took hold. Congress approved that loan. Administration officials say there is no cost to the U.S. budget of making the pledge permanent. In fact, the United States earns interest on the resources it deposits with the fund, as do other nations.”

The leader of the NWO and globalism can’t keep its promises??


Google makes $100M/day and has been fined $7M for stealing your personals. Meanwhile, the corpocracy has placed one of their own as head of the SEC. Maybe Google can get a rebate.

Posted by: Roy Ellis at March 13, 2013 8:23 PM
Comment #362839

Stephen

It is an indisputable fact that our government has been constantly moving left for a very long time now.
We started out as a Constitutional Republic where government ran government and the people ran their own lives, and we are constantly “evolving” into a majority rules democracy where government runs government and the peoples lives.
And yes, this is why things are so bad.

Our fiscal problems are due to the fact that we spend more than we take in, and Republicans and liberals are both to blame for supporting that leftist decision.

The problem isn’t the political blame game you like to play, it is that despite what the Constitution gives us, leftist policy has become accepted as how things are supposed to be. Rights freely given up for security. Freedoms freely given up for comfort.

“…and then shifting the blame onto the Democrats to maintain power.”

BS. You have convinced yourself that the election of President Obama means we are now a leftist nation and you have moved the political “center” further left. What was once a moderate “right” position you now proclaim to be a far-right extremist position and anybody who dares to still hold such positions are uncompromising radicals.

“The world isn’t an equation, and even the best-intentioned politics can mutate into bringing results the original proponents never dreamed of.”

I agree. In fact, I have no doubt that the founders never dreamed that the government they created would have so much control over the lives of the people. Especially after they put all those protections in the Constitution.

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