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To: Reeses
No, no no no no. Oh god.

Inflation is a mere change in prices, it runs 3% a year or so. More like 4% from WW II to the early 80s, more like 2% from the late 80s to now, but around that much.

Population growth is 1% a year pretty much forever.

The economy grows more than both combined. It is called, say it with me now, real economic growth. It is caused by, all together higher productivity. Meaning, each hour worked produces a greater real value of goods and services than in the past, because people are working smarter, using better tools, using vastly more complicated and powerful capital equipment, etc.

Total taxes at all levels of government are 25.6% of GDP, not 35%. In 1980, total taxes at all levels of government came to 28.9% of GDP. Government's share of GDP is not higher now than then. But real GDP is way higher - 5 times higher in nominal terms, and 2 times higher adjusted for changes in prices. Population is 35% higher. Income per person in real terms is 46% higher.

112 posted on 03/02/2010 11:46:09 AM PST by JasonC
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To: JasonC
Total taxes at all levels of government are 25.6% of GDP

The total taxes on my personal GDP are much higher than that. I must be doing something very wrong. Anyway, I appreciate your take and bits of education.

113 posted on 03/02/2010 12:38:59 PM PST by Reeses
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