Earlier quoted context omitted.
The 2012 US GDP was 15.68 trillion. The 2012 Federal government expenditures were 3.54 trillion. Right off the top, the Federal government accounts for 22.6% of the economic activity in the country. Depending on how you measure, you can quibble with this exact choice of numbers, but no matter how you fiddle you're not getting out of the Federal government being a huge part of the economy directly. State and local gov…
I agree with your views regarding less government being a good thing. Just in case some take pride in the number you provided I want to take a moment to put it into some context. > The 2012 Federal government expenditures were 3.54 trillion. Right off the top, the Federal government accounts for 22.6% We thankfully have a canonical example that exposes just how bad government can be: Obamacare. Government is the only…
For the last year, I have been working with a team of 20+ to accomplish only half of a task that would have been absolutely trivial in comparison with my last job in the fully private sector. It could have been accomplished by one person working for 6 months, or perhaps 2 working for 4 months.
The government pays for 20 times the personnel, quadruple the required time, and gets a quarter the quality in return. And this team is rated very highly by the government's idiotic metrics.
Since the contractor companies also skim off the difference between what the government pays them for the labor and what they actually pay their employees, I can easily believe from my anecdotal experience that government is capable of wasting 99% of everything that it spends.
While waste does not disappear entirely from the economy, it is not directed into useful production, which is the basis of a healthy economy. What it does is build a human ecosystem around absolute fraud and purchasing political favors and influence.
That doesn't account at all for the things that government does to destroy the wealth-building activities of others, such as requiring barbers to spend thousands of dollars to get licensed to cut hair for $10 a pop, or demanding that 8-year-old kids selling lemonade buy business licenses.