Dan Mitchell recommends pulling government agencies out by their roots, rather than simply trimming the amount of spending they receive. Dan, a friend and a senior fellow at the Cato Institute, is discussing the growth of federal spending since WWII. After showing three charts of federal spending, Dan reaches the conclusion that without entitlement reform, the country’s finances are doomed.
You’ll notice that the negative upward trend was reversed during the Reagan years and we continued to make progress during the Clinton years.
Unfortunately, policy then moved in the wrong direction under Bush and Obama.
Which brings me back to where I started. As bad as the numbers are today, they are likely to get worse in the future because of demographic change and poorly designed entitlement programs. So unless we have genuine entitlement reform, we will become a failed welfare state.
See the charts and read more here.