“The Cost of Big Government Involvement”

Thoughts on a Free Market Economy…
“The Cost of Big Government Involvement”
By Phyllis Hunsinger
March 1, 2018

Have you noticed when any problem rears its head in the United States, there is an immediate outcry for the “government to do something?” As the citizens demand the government be the source of all problem-solving, the federal debt at the end of 2017 was $20,820,865,274,109.00 and growing daily. Forty years of the government stepping outside its proper role as defined in the U.S. Constitution has resulted in $20+ Trillion debt.

When individual American citizens spend more money than they take in, the individual is responsible for that indebtedness. What happens when the government continues to spend more than is received? Since the government has no money except what it confiscates from the taxpayers, the taxpayers are responsible for the indebtedness. In the Wall Street Journal on February 27, 2018, Edward Lazear addressed this issue:
“To the extent that government spending goes to programs such as welfare that directly discourage work, it has an additional growth reducing effect. When fewer people work, those who do must be taxed even more to cover public expenses. These heightened taxes on labor discourage work in turn, pushing more potential workers toward government support. Funding welfare concentrates ever higher taxes on ever fewer workers and companies, which further reduces growth.”

The proposed 2018 federal budget reveals two-thirds of the budget goes for social programs, including Social Security, Medicare, Medicaid, Children’s Health Insurance Program, Obamacare, Head Start, Food Stamps, and Aid to Dependent Children just to name a few.
Since the interest payments due on the $20 + Trillion debt will continue to rise, very soon the social programs and interest payments will consume almost the entire budget. Taxes will continue to be raised to the detriment of the entire working class as identified above.

Asking the federal government to solve problems is an expensive solution, not to mention, that the track record of the federal government’s ability to solve problems is dismal, which is a blog for another day.

There is no Santa Claus. Just know that regardless of what government dollars are spent on, you, the taxpayer will pick up the tab through higher taxes and reduced economic growth.

https://www.free-dom.co.us, Phyllis Hunsinger © 2013 All Rights Reserved

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