Let’s Check The Map. Regarding Role of Government

Have you ever driven around lost, finally pulling over to study the map?  Let’s pull over and take a closer look at the direction government is headed in the United States.  You can decide for yourself if we are off track or need to turn around.

Like everything else, the role of government in America has changed dramatically over time. In its early years it was uncertain  America would even have a Federal government.  After fighting to win freedom from the heavy hand of centralized British power there was not much support for creating any sort of new “monarchy".  Credit to Alexander Hamilton, and the reluctant attendance of George Washington at the Constitutional Convention of 1787, for the formation of a strong but limited Federal Government.   

Since government has unique power we understandably expect it to serve and protect us.  Certain functions such as public safety, defense of the nation, transportation infrastructure, financial markets regulation, food and drug regulation, justice, environmental protection, social safety nets, etc are best handled by a citizens-empowered government in service of citizens.  A brilliant and resilient framework of checks and balances ensures equilibrium between Executive, Legislative, and Judicial branches of government.   

Over generations government has grown in size, cost, and reach never imagined - or perhaps intuitively feared, by America’s founders.  Today, government directly touches every aspect of our lives.  Every dollar earned or spent is subject to taxation.  A de facto unelected “regulatory” branch has emerged with seemingly unlimited power to impose costs, requirements, and restrictions on all manner of everyday life. Government bureaucracy perpetually expands, with its own preservation an unspoken priority.  Obsolete or ineffective programs are rarely eliminated.  

Size, cost and role of government is ever increasing.  Federal, state, and local government currently employs over 25,000,000 people which is about 10% of the adult United States population. This does not include a sea of contractors and consultants which makes the total of full-time equivalent employees much higher.  

Federal government spending in the United States was last recorded at 37.0% of gross domestic product (GDP) in 2022. Government spending to GDP averaged 25.6% from 1900 until 2022.  This means recent spending vs GDP is running 42% higher than the long-term average!   

Federal debt is currently $35,000,000,000,000 which equates to $103,000 per citizen.  Remarkably, this debt figure does not include entitlement obligations, which, unlike businesses, the government does not account for as debt.  Even more remarkably, federal debt is increasing at a rate of 5,200,000,000 per day while interest costs on the debt are running at 2,500,000,000 per day.  

Federal debt was 129% of the country's GDP in 2022. Federal debt to GDP averaged 65.2% from 1940 until 2022,  This means current federal debt as a percent of GDP is about double the long-term average!

As you consider the role of government, consider unintended consequences of speeding down a one-way street.  The crash could be horrific. Especially for your children and grandchildren. Like course correction when driving, sometimes turning around is necessary to head in the right direction.