In Terms We Can Understand


Americans are clamoring for a fact-based debate about the budget, but the numbers they're hearing from Washington are terribly confusing, says John B Taylor, Professor of Economics at Stanford.  In an editorial in the WSJ here, he asks a simple question, 'If government got by with 20% of GDP in 2007, why not in 2021 when the GDP will be substantially higher?"  He goes on to present the chart below that is very revealing about the direction that President Obama is taking the country.
taylor


This is the first analysis that The Forgotten Man has seen that puts government spending in terms we can all understand.  It just doesn't seem reasonable that we should be increasing our spending (ie, our tax dollars) to historically high levels.
 

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