Government and the American Economy: A New History
Valuable perspectives in dealing with our current economic crisis from the University of Chicago Press Order/Information
The Gallup Job Creation Index reveals that the federal government is hiring more workers than the private sector. Local and state government continue to struggle financially while the federal government continues to spend more primarily through increasing of the Federal Debt. The report illustrates the big increases in Federal spending are resulting in more jobs paid by the taxpayers.
Gallup's Job Creation Index for April revealed “a significant more hiring within the federal government than in the private sector. Both show a substantially more positive picture than state and local governments, where firing far eclipses hiring.”
A September story in Washington Post projected a “massive hiring binge." The Post noted in September 2009 that the “feds would be hiring as many as 270,000 new workers for “mission critical jobs over the next three years, prompted in part by the large number of baby-boomer federal workers reaching retirement age. However, they also reflect increased spending on the federal level along with workers required to conduct the U.S. Census. Apparently the Post story was on target with the projection of increased hiring.
The problem is that the new jobs created by the federal government are only made possible through increased debt or more taxes paid by citizens and businesses. Ultimately, it is the private sector and individuals that will pay the costs of this hiring through their taxes or decreased value of the dollar created by inflation.
Federal Spending
Most projections indicate continued increases in federal spending. Spending in 2008 was $5.3 trillion and it's projected to grow to more than $7.1 trillion the last year of the Obama Presidential term.
The following chart puts current federal spending in context with the budget of about $3 billion a decade ago.
Putting Spending and Taxes in Context
The New York Times presents interesting charts on federal revenue and spending through Economix. The charts illustrate the big changes in where tax dollars go, with a significant decrease ivident in defense spending and an increase seen in social welfare and health care.
Understanding Your Share of the Payment for Spending
With all of the spending taxpayers ask just how much of this is being paid to support the government. USA Today has created an interesting online calculator that will provide precisely that information.
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