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A description of dr friedman who use national income data for measuring economy size

When someone says, "the era of big government is over" - - You should ask, "compared to what? The question is how small is small? Stated in a different manner: It has not always been that way - only recently.

Here's where we are. This pie chart approximates today's economy measured by national income - - divided into two 2 slices: The residual blue slice is the balance left to the private sector. Is such a large share dependent on government what we mean by 'small government'? Do we intend such for our children and grandchildren? You have a right to know. Let's explore with a few pictures.

It may 'blow your mind' to find how 'small' become 'huge'. Some would call socialism 'un-American'. Many economists such as Nobel Prize winners F. That's where we are today. If such expansion is gradual over time, many do not recognize what is occurring.

They may sense a steady degradation in quality of life and self-control of one's destiny, feel like they are running faster to keep even with more difficulty becoming debt-free themselves, but do not understand the cause. At some point, if not reversed, the future well-being of citizens can become even more severely jeopardized - - as proven by history. Over time more and more citizens have become so dependent on government spending control that, while they know major changes need to be made, they resist the very changes that are needed a description of dr friedman who use national income data for measuring economy size restore the health of their freedom and economic future, and that of their children and grandchildren.

They have become so government-dependent or, addicted that they fear giving up that dependence. They have been 'captured' by socialism - - and, headed toward a result their founding forefathers never intended - - a road of increasing serfdom to the state. America is more a socialistic nation, and less a free-market economy, then ever before in its history, because our total economy has become significantly more government-dominated and dependent.

Think of the total economy as a pie, divided into two economic slices the government sector share and the pure private sector sharewhere the whole pie is the total national income.

If the government share expands faster than the total economy, then the free-market private sector's share is compressed. With 3 simple color pictures, we will view the relationship between these sectors at three different times in our history prior and the New Deal, after World War II disarmament inand as it is today - - and observe the march of socialization in America.

Keep your eye on the red slice of the economic pie, as we will move from the first pie chart below to the second, and then to the third. Therefore, less and less of the nation's economic pie is left for the pure private sector, being that part of our economy not dependent on government spending yet upon which national productivity, savings, living standards AND freedom fully depend for our youth.

Look at the left chart.

  1. Arjan Bruil Statistics Netherlands Presentation 2. We imported from Europe the concept of Big Government and socialization of the economy.
  2. Apologizing for taking up his valuable time, I quickly told him of my plan as a retirement project to study his statement and to look into various economic indicators facing the young generation. That package included a copy of Dr.
  3. America is more a socialistic nation, and less a free-market economy, then ever before in its history, because our total economy has become significantly more government-dominated and dependent.
  4. Description of the intervention open dialogue, only use data of the first phase can either inflate or deflate the effect size we will use the random-effects.
  5. Clearly, government dependence was intended to be most limited, and debt was for war-time only after which it should be liquidated. The reader should keep in mind Dr.

At that time the private sector was 7. Today's government spending, as you will soon see, requires that person to work 5.

That 10 point swing was mostly attributed to government getting into the 'socialized spending business', starting with the 'New Deal' - - basically going into the social business, an area never envisioned by our founding forefathers as a reason for forming a federal government.

A description of dr friedman who use national income data for measuring economy size

At this point, the private sector was about 4 times larger than government - - well below its prior 7 times larger ratio of the first chart. From chart 1 to chart 2, we have observed how the private sector's share of the economic pie was reduced by 10 points - as a result of socialization up to Was that 10 point shrinkage of the private sector by government expansion enough?

Look at the next chart to see what has since occurred. NOW, look at the left chart for today. Now the productive private sector having lost an additional 29 points is not much bigger than the government-controlled share of the economy; a long fall from its prior position of being from 5 to 7.

  • That's where we are today;
  • Therefore, less and less of the nation's economic pie is left for the pure private sector, being that part of our economy not dependent on government spending yet upon which national productivity, savings, living standards AND freedom fully depend for our youth;
  • There's no free lunch;
  • Now, about those three pie charts above??

Notice to Reader Below you will find links to backup reports; it is suggested you first read the full page without clicking a link, then if you wish, go back to the link of your choice From chart 1 to chart 3, government expanded its share nearly 4 times faster than the total economy. There's no free lunch.

If you want big government then you work for it. Why do you think today's citizens allow more government than did their grandparents or the nation's founding forefathers? Perhaps those interested in another social spending surge will continue to try again.

Scroll up and check those 3 charts again - and watch the growth of the red slice of the pie. Who was it that said: Who was it that said family income, saving, living standard AND freedom growth depend on the capacity of the private sector? Just about every economist in the world, including the Economic Report of the President to Congress.

If most say nearly all eggs belong in the private sector basket for the sake of good and secure jobs with long term real income growth, then why have we allowed government to grow faster than the economy - - and thereby shrink the relative size of that important private sector and its capacity to generate good stuff?

There can be but one answer. Those in control in recent decades have been more interested in government expansion, political power, control and dominance, than in families and children and their freedom to choose - and more convinced that big government knows better than families what is good for them, or for children than their parents.

What else explains the result? Who said government has too much power? Who said the federal government creates more problems than it solves? Who was it that said today's average citizen should spend 5 months per year just to earn all income, sales, excise and property taxes plus debt loadscompared to but 1.

It stands to reason, the more you work to pay government the less of your work effort is left over for your own use today and for your future. I don't know the answer, but the facts are that the average citizen today does spend 5 months per year at his job to pay his 'fair' share of all taxes to meet this government growth.

Pro-big government advocates obviously believe bureaucrats are better at deciding what to do with ones earnings than families and workers making their own decisions. While there are so many wonderful things about our great nation, as summarized in the Celebration Reportthere are also some troubling items that need attention. If we understand the negatives then we have the chance to make the nation we hand over to our children and grandchildren even better.

As documented in the Federalist Papers ofAlexander Hamilton, etc. If successful in carrying out those principles, it was believed the 'welfare' of citizens would be assured. Taxation was used only to pay those bills.

Such principles did not include such items as social welfare, entitlements and income re-distribution functions. We were a nation that used government primarily only for those 4 principles, relying on ourselves for all other needs. Starting with the New Deal in the early s, America embarked on a course of expanded socialization programs, an area not included by her founders in their 4 principal tasks of government.

We imported from Europe the concept of Big Government and socialization of the economy. America had started along an un-charted path, of increased citizen servitude and government-dependence - - and, the 'chickens are coming home to roost. Nearly all of the increase is in the 'social arena', an area not included by our founders in their 4 principles for creating government. A few resulting items: And, these only describe some of the economic ramifications - - not the biggie: Additionally, the Tax Report shows the average citizen must work 5 months per year just for taxes to pay for this spending, compared to but 1.

  1. I listened as he presented his views a private lecture. Debt data was plotted in different ways, including showing today's debt ratio well above the past, over HALF America's federal debt was created in the s and that today nearly half all federal debt is owed to foreign entities.
  2. We are never too old to contribute, and we must never be too lazy or 'busy' or selfish or feel too insignificant or scared to try.
  3. Some commentary in these Grandfather Economic Reports is from others with credits given , the balance being my own.

Did our nation's founding fathers intend this? And, in recent years, national security spending as a share of the economy has dropped to the lowest level in several generations - - leaving our nation vulnerable to surprise. See the National Security Report. We see the dramatic pie chart trends above. These trends happened because pro-government forces sold the 'free-lunch' concept to voters, and we fell for it and turned over more control of their lives to government.

But, the Voter Report shows a declining rate of citizen participation in national elections, indicating that a lower and lower percentage of voting-age citizens believe there is something they as citizens can do to turn this around. And, the Trust Report shows trust in government declining to near an all-time low. A sad commentary on a representative democracy.

What about the next generation? Now, about those three pie charts above?? Take a look below. In addition to that, perhaps you would like to see a year trend chart of U. Most Americans believe that is sufficient - - and this ratio is supported by history and a major congressional study on growth. However, even that ratio would probably be considered excessive by our nation's founders and our history prior to World War II.

Therefore, government spending control of the economy today is at least twice what it should be. But, government spending is not the only activity by government which reduces the private sector's share of the economy. Not only must we cover government spending, but we must also pay for the costs to comply with government regulations - - since government officials create and mandate regulations on the private sector which further reduces the private sector because government does not 'fund' these costs - nor does it budget them.

The rising red bars in the left chart represent the sum of government spending plus regulation compliance costs mandated by federal, state and local government. Dramatic pictures in that report, with reference to one of the few learned studies.