$20,000 per Household: The Highest Level of Federal Spending Since World War II

Heritage Foundation ^ | Dec 8, 2003 | HBrian M. Riedl

[The Raven]

The 2003 fiscal year mercifully concluded on September 30. Reckless spending by Congress and the President made it a year in which:

-Government spending exceeded $20,000 per household for the first time since World War II,
-The federal budget expanded by $353 billion over its 1998 level,
-Defense and the attacks on September 11, 2001, accounted for less than half of all new spending since 2001,
-Mandatory spending reached its highest level in history, and
-Spending increased despite net interest costs plummeting by $110 billion.

This paper examines the colossal expansion of the federal government since 1998. That year, a temporary tax revenue boom brought the first budget surplus in over a quarter-century. Abolishing the budget deficit also eliminated one of the most effective arguments for spending restraint, and the spending floodgates swung wide open. By 2001, the budget surplus was quickly evaporating because tax revenues, back to their historical levels, could no longer keep pace with runaway spending. The 9/11 terrorist attacks then necessitated new spending on national security. But by that point fiscal responsibility was a distant memory, and lawmakers steadfastly refused to balance these new high-priority security costs with savings elsewhere in the budget. As 2003 closes, the nation finds itself burdened by runaway federal spending and massive looming structural budget deficits.1

[The Raven]

Whoa baby!!!

[RLK]

-Defense and the attacks on September 11, 2001, accounted for less than half of all new spending since 2001,

-----------------------

That's the important thing to understand here.

[polemikos]

Any inflation-adjusted data?

[Jim Robinson]

My conclusion and recommendation is the same as last year and the prior year and the prior, etc. Cut spending, cut government, cut taxes. Repeat as often as humanly possible.

[CyberCowboy777]

You were saying....

[Moonman62]

Sounds good, but once politicians get spending fever, they won't stop until there is some sort of fiscal crisis. Voters who haven't gotten their pork yet will demand more spending until they've gotten as much pork as everyone else.

[The Raven]

Fortunately the socialists can't take more than 100% of my money.

But, alas, with entilements approaching 80% of government spending - the California syndrome will eventually hit the Feds. One day soon, the tax drag will permantly cool the engine of capitalism and the country won't be able to afford the promised spending. Then the choice will be - print money or raise taxes (never reduce spending).