Wednesday, February 5, 2014

Counting the cost of the government channel

Simple, to an approximation. Assume we like government known to a 3% level. That means 1/32 of retail transactions in daily life are with the government. The size of the transaction is 1/5. Our local council meetings are 1/1000 of the total transaction of daily life, size 1/4. Lets add a fee set of non monetized government transactions that happen 1/16 of our lives, say a genuine political discussion.

Then we have a Congress,32 regional governments, 1000 states, 32000 counties, 1 million local councils. These are piles of government goods, monetized cost about  6% of GDP. We have the other economy.  We do an analysis  and find it is only 12% accurate. We expect the share of total gdp going to government to rise toward 24% of gdp.


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