The question is NOT how much of the USA public spending is a percentage of the GDP !
The public sector of the USA economy, along with the entitlements of SSI and Medicare, are a vital part of the USA GDP. The 'idea' that measuring public spending against the entire GDP of the USA is very, very deceiving. When there are contractures in the USA economy because the business sector of the USA economy has been irreverent and/or negligent and/or greedy, the percentage of the GDP of the USA that is the public sector spending will definately GO UP.
Why?
Because the business sector of the USA GDP is losing its PERCENTAGE of the total. So, while in 2000 after the surplus of the Clinton Administration, the USA seemed to be cruising without a lot of concern to the increasing percentage of the public spending of the USA, at the end of 2008 when the entire USA economy was in jeopardy and heading south, the percentage of the USA public spending grew.
It makes more sense to realize that 'economic growth' needs to be the focus of any economic policy and asking the government to 'down size' is not realistic a solution to the CONCERNS of the average citizen or the lousy financial experts around the globe.
The real solution to 'growth' of the USA economy is to increase local and SINCERELY small business owners to 'saturate' their local economies to the extent they can and then and only then seek foreign markets to make up the difference. In other words, put everyone back to work in local economies to increase the tax revenues and then seek outside ? competition ? or better yet, business opportunists that are not competitive to bring new products to existing HOME GROWN American products.
One aspect to politics that I can usually count on is that when 'rational' by political pundits and candidates seems backwards' it most definately is.
I asked myself, would I rather higher taxes on the wealthy and healthy to fund the USA's vital public sector economy or would I rather yield precious needed tax dollars to wealthy citizens and corporations to spend in Germany on orgies?
The way the USA economy works now with outsourced jobs, marginal incomes to the USA Middle Class with profits from Wal-Mart going to China, is that when we 'run short' of revenues we turn around and BORROW the profits China is reaping from OUR starved economy.
Hello? Do I detect a vicious cycle that will further starve the USA of vital tax revenue through vital and good paying jobs while asking the profiteers in China to pay for their own purchase power in the USA by increasing our debt without investment to our growth? I do believe so.
What India and China do not realize or at least appear not to realize is that when USA dollars, in the way of profits, leave the country, they are actually destroying their own markets. Have we seen this before? Yes. When? When USA automakers moved their production plants out of the USA for higher dividends to their stockholders while putting American workers out of work so they had no more income to actually purchase automobiles.
Something has to give here and it HAS TO BE WALL STREET and the Super Rich. The USA Middle Class has given all it can give and it needs to stop.
