Gov's Girth - How Big Is It?

American government is the largest conglomerate in the world. It is expected to consume $5.4 trillion dollars¹ in 2009, a healthy share of the economy: a thumping 10% of global GDP and 40% of US GDP. It directly employs 22.5 million workers,² and can blow any country, including itself, to smithereens in seconds.

In 2009, government is expected to tax 27% of the US economy. It will spend 40%. The difference is the federal budget deficit, about $12,000 per family. Debt held by the public of fed and state and local government is expected to equal to 70% of everything produced in the US.

Put another way, government is projected to raise $3.8 trillion and spend $5.4 trillion, leaving a deficit of $1.6 trillion. Government debt held by the public then will equal $10.2 trillion.³

"...Government is scheduled to pay out $120 trillion more than it is scheduled to collect..."

Government has more obligations than show up here. Over the long haul, government is scheduled to pay $120 trillion⁴ more than it is scheduled to collect in taxes. That is $900,000 per family today.

According to a 2007 estimate by the US Government Accountability Office, closing the gap on just the federal government portion requires a permanent 40% federal tax increase or a cut in government spending of the same amount.⁵

It all adds up to a Paul Bunyan size waistline.

notes:

1. MyGovSpending estimates of 2009 taxes, based on Congressional Budget Office projections for 2009 for federal government expenditures. State and local government expenditure projections for 2009 use BEA data for 2008 increased by State and Local Government spending increases over the past 10 years.

2. 2007 Global GDP from World Bank. Increased by 2008 world economic growth from CIA Factbook, and increased by 2009 world economic forecast from the IMF.

3. Federal Debt Held By the Public is projected by the CBO to be $7.9 trillion in calendar 2009. Projected 2009 State and Local contractual debt of $2.3 trillion excludes debt sponsored by state and local governments but used for private purposes. US Census Bureau is the source for historical numbers which are then increased by the growth rate of the previous five years.

4. This number includes federal debt held by the public, state and local contractual debt excluding debt issued for private purposes. It includes unfunded liabilities for government employees and unfunded Social Security and Medicare liabilities as projected by each program's trustees. Some other commentators use Social Security and Medicare projections truncated at 75 years in the future. MyGovSpending.com uses the trustees' "in perpetuity" numbers to include the impact on today's young children and future generations.

5. US Government Accountability Office (GAO), Fiscal Stewardship: A Critical Challenge Facing Our Nation, pg 13.

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