More Czars, more registered lobbyists than ever, more alphabet organizations and plans, more government takeover of private entities, more regulation, legislation, and higher taxation coupled with an aging population with more entitlements, will lead to more crisis governance. Putting out the hottest fire(many times unintended consequences actually throw gasoline) will rule the day. Our government has been kicking the can down the road for many years and Barackracy has taken the kicking to a new level.
Today big government is back with a vengeance: not just as a brute fact, but as a vigorous ideology… America’s financial capital has shifted from New York to Washington, DC, and the government has been trying to extend its control over the health-care industry.
The Congressional Budget Office (CBO) calculates that entitlement spending will grow from 9% of GDP today to 20% in 2025. If America keeps its distaste for taxes, it will face fiscal Armageddon (see chart 3).
A scary chart for sure. Unlike doctored global warming stats, that hockey stick is real. The combination of Barackcracy plus the end of the demographic Ponzi scheme should be sounding all kinds of alarms. We have to make some serious positive changes soon.
The level of public spending is only one indication of the state’s power. America’s federal government employs a quarter of a million bureaucrats whose job it is to write and apply federal regulations.
No wonder union leaders have been to the White House multiple times. It’s about capturing all the new public employees where 30% are unionized as opposed to 7% in the private sector. Government employment has been expanding rapidly while the economy and private sector jobs are retracting in a big way. The government will be even tougher to downsize in the future. Government jobs themselves will become entitlements.
“The question that we ask today”, said Barack Obama in his inaugural address, “is not whether our government is too big or too small, but whether it works.” This is clearly naive: with deficits soaring, nobody can afford to ignore the size of government.
We have some real hard choices to make soon. The problems will be tough enough without a rapidly expanding government. Politicians hide from any accountability and let crises happen, since that is the only time they get political cover to do something, and often times that something is a knee-jerk reaction that makes things worse.
Who is going to stand up to be the bearer of bad news, educate America about the near future challenges, and champion the action we must take now to reduce government burden to become more productive? Or are we doomed to suffer a reset by the inept “elected elite” in DC?