Tag Archives: speding as a percentage of GDP

Government Diversion

Federal government spending has steadily increased from 14% of GDP in 1950 to about 25% today. Because of this, legislators and bureaucrats are increasingly lobbied in an effort to have them bestow government largess on one group or another. Unfortunately, this is a zero-sum game. Were government spending to decline, so would the importance of government freeing up energy and creativity to be devoted to the private sector.