Saturday, July 17, 2010

How much federal spending can we handle?

Seems to be a big question among economists who think economic growth must come from Congress.  Let's look at Federal spending divided by personal income:


The Clinton administration left office with federal spending equal to 22% of personal income.  Bush, the Communist, ran it up to 24%, and now Obama and his Keynesians have it at 30%.  Have we hit the limit?  Krugman says no, but the states are bankrupt, their taxpayers are disappearing.  California pays something like 7% for 30 yr bonds.  California is Greece, so says the Gubinator.  We have reached the limit.

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