Topic: Monetary Policy
The 3 Trillion Dollar Government: Hyperinflation in America? (Part 1/2) A Prelude. Interesting statistics on the Federal Government Taxation and Deficit, the Trade Deficit, the National Debt, and moreby Jake Towne, the Champion of the Constitution
(libertarian)
Sunday, July 13, 2008
A brief look at the size of the US government from the perspective of the Bush White House:
In 1990, the total annual receipts for our government was $1.0 Trillion. Please don't forget our Armed Forces were 2.1 million strong and staring down the USSR. We now have 1.4 million troops. (1, pg 33, 333-334)
$2.9 Trillion in federal spending in 2008 with a Budgeted deficit of $410 Billion. (1, pg 33) For the average Doe, this is like earning $50,000 in a year, but planning to spend $58,000 – (except in your Reality the Government taxes you and wants perhaps close to $20,000 as well)
15 out of every 100 members of the "civilian work force" as defined by the Department of Labor in 2008 Q2 now work for the US Government. (2)
This greatly outnumbers the approximately 9 out of every 100 that work in Manufacturing. So we roughly have 1 person "Making Stuff" for every 2 people we have Sitting in a Government office. (2)
$0.7 Trillion was the reported 2007 US Trade Deficit for Goods and Services. Exports, $1.6 Trillion. Imports, $2.3 Trillion. So to pay for the Government every year, we have to roughly DOUBLE our Total Exports! (3)
To myself, who "Makes Stuff" and whose face-to-face contact with the Government in 2007 consisted of Passport checks and confiscated Water Bottles and Toothpaste, this would be downright hilarious if 40% of my income, and a similar chunk of my company’s profits (which otherwise at least part of would have been mine) weren’t being stripped away to pay for everything.
What is the Future you ask? Here’s what the Government says.
$0.9 Trillion increase in taxation from 2008 levels by 2013. (1, pg 33) That is $11,400 annually for every man, woman, and child in the United States, an increase of $3,000 from today.
The National Debt balloons from $9.7 Trillion in 2008 to $12.3 Trillion in 2013. (1, pg 132) That is $41,000 for every man, woman, and child in the United States, an increase of $9,000 from today.
Are you retired or ever think about retiring (not Next Year, I mean as in EVER)? Then perhaps you should read Part 2.
We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.
As always, unlike the NFL, the author grants full permission to allow any accounts of, rebroadcasts, retransmissions, repostings in part or full of this article to your blog or anywhere else in order to promote the Restoration of our Republic.
The views expressed in this
article are those of Jake Towne, the Champion of the Constitution only and do not represent
the views of Nolan Chart, LLC or its affiliates. Jake Towne, the Champion of the Constitution is
solely responsible for the contents of this article and is not an
employee or otherwise affiliated with Nolan Chart, LLC in his/her role as a columnist.
Posted By: Jahfre Fire Eater
Date: 2008-07-14 06:04:37
Thanks for the run down on the stats, Jake. When you factor in the people who "make stuff" that is for delivery under a government contract the number of folks who are not making stuff that contributes to our prosperity is much higher.
Many of our non-government manufacturing has been pushed outside the USA.
This has made the for-government manufacturing a much more important component of our economy. This means that more than ever continued employment relies on the government to buy stuff.
Unfortunately, the stuff the government likes to buy is stuff to kill people or to increase the efficiency of suppressing and controling those who are still breathing.
I left the DOD contracting world back in 1997 and now I "make stuff" (software) that enables and empowers business to operate more efficiently and to keep their competitive advantages from being commoditized in the marketplace. This frees up more formerly over paid corporate dead wood to become lower paid government cogs...or for those with ambition and initiative, to seek out ways to increase their value to their employer or to set their own value by going into business for themselves.
One thing I wonder about your report on statistics is what is the projected population growth between 2008-2013? I mean, is the $11,400 per person based on today's population of based on some projected population number for 2013? This little point makes a huge difference in the validity of the math.
Posted By: Jake, the champion of the constitution
Date: 2008-07-14 09:35:59
Jafre Fire Eater -
Good point. Extrapolating with the CIA growth rate at https://www.cia.gov/library/publications/the-world-factbook/print/us.html raises the population from 301 million to about 314 million (not sure how the rate will change over time, but an even better question is why is the CIA in charge of calculating this).
This changes the numbers from $11,400 in the above to $10,800, and from $41,000 to $39,000.
Great article Jake. The statistics are overwhelhming. Coupled on top of what you are wrting, and the coming 9-25 trillion dollar debt from on the social goodies the government is giving out...we might have some problems down the road.
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