This chart compares the size of government in America to that of Germany, France, and the European Union (EU) since 2001. This chart shows that the size of government in the U.S. in recent years has been steadily catching up to the size of government in these European countries. For example, Germany has reduced the size of its government since 2001 while the size of our government has increased. In 2009, the size of government in the U.S. will be just slightly behind the size of government in Germany. Even when you look at the size of government for the combined EU or France the U.S. is not far behind. This is a dramatic shift.
Under the Obama Administration’s budget plan the size of the U.S. government starts coming down after 2009. However, as I have stated in previous posts, I believe the projections in this budget plan are optimistic (predicting just a small recession in 2009 followed by strong growth over the next decade). For now, what is sure, is that government in the U.S. is getting bigger.
> Office of Management and Budget, A New Era of Responsibility Renewing America’s Promise, Table S-1.
> European Commission, Directorate General for Economic and Financial Affairs, Economic Forecast Autumn 2008, Table 35.
>Bureau of Economic Analysis, Tables 1.1.5. Gross Domestic Product, and 3.1 Government Current Receipts and Expenditures.
> The estimate for 2009 cuts state and local government expenditures by 2% from 2008 levels.