The graph above depicts federal, state, and local government spending from 1946 to the present. As I think is apparent, there are a number of inflection points, notably in the 1990s where the rate of increase declined, around 2000 where it increased again, and recently during the Great Recession when it very nearly went vertical which I presume is the influence of the ARRA.
Here’s the same graph in log form:
OMG! It flattens out at the top.
Steve
Mostly because federal spending has been just about flat for the last year.
The thing about government spending is that, if you think there should be more of it, you either a) think that we should have less consumer spending; b) you think we should have less business investment; c) you think we should have less saving; d) you think the government should borrow more; or d) you think the value of the dollar is too high.
Yeah, it flattens out at ~40% of GDP, or six trillion a year. Success smaller government types!