Econbrowser: The “Ever-Expanding” Government Sector, Illustrated (Part II).
More data on the fact that there has NOT been a huge expansion of government.
That uptick in transfers at the end is mainly unemployment insurance, plus some Medicaid — that is, it’s safety-net spending in the face of high unemployment.
From The Incidental Economist this article about cost growth in Medicare and Social Security.
Federal spending and revenue projections as a percent of GDP: Alternative Fiscal Scenario (CBO)
It’s no different for state governments — health care costs eventually dominate.
Ezra Klein – Debunking myths about Canadian health care.
“Common knowledge” that Canadians are coming to the US in droves for health care and that Canadian doctors are deserting Canada for better jobs in the US is simply not true. This is not my opinion — this is real data.
From Ezra Klein
“The government is now impeding an economic recovery. But it’s not for the reasons you often hear. It’s not because of debt or because of taxes. Nor has it scared the private sector into timidity. It’s because, at the state and local level, it’s firing people. …
The government can, if it’s willing to run deficits, keep those workers employed. But Senate Republicans, alongside some conservative Democrats, have decided to make the government pro-cyclical: Rather than fighting the downturn in the business cycle, the government is now accelerating it.”
http://robertreich.org/post/1263581986
If you like astronomy pictures, check out the European Southern Observatory’s (ESO) top 100. Here’s a sample:
This is M 83, a spiral galaxy about 15 million light years away, and, at 40,000 light years across, about 2.5 times smaller than our Milky Way. For more pictures, also check out Astronomy Picture of the Day (APOD) for a new one, well…, every day.
This graphic was published in the New York Times last February. It is the best depiction of the budget I have ever seen, but it’s for Obama’s proposed budget. I’m looking for a similar presentation of the actual budget.
Ezra Klein agrees with me that now’s the time for investment in infrastructure.
Andrew Samwick seconds Ezra Klein and adds this proverb:
“The best time to plant a tree is 20 years ago. The second best time is today.”
