Indeed, it is hard not to grow nostalgic for the
Clinton years. The recent COGD peak was July 20 in 1982,
after which Ronald Reagan brought COGD down to July 2 in 1988.
President George H.W. Bush — he of “Read my lips” fame — then
gaily pushed the burden up again, to July 18 in 1992. COGD
started coming down under President Bill Clinton; the GOP’s 1994
takeover of Congress accelerated the drop. By 2000 Americans
worked “only” until June 29 to pay for America’s still wastrel
public sector.
Now, thanks to Presidents George W. Bush and Barack Obama,
and Congresses under Republican and Democratic control, COGD has
skyrocketed to August 19. We are working an incredible 51
days longer for government today than just a decade
ago.
There is no silver lining in this financial cloud. We are
paying more for more government, not for better government. The
Orwellian “Patient Protection and Affordable Care Act” will waste
trillions of dollars and impose trillions of dollars more in
wasteful regulations while reducing patient control over health
care made more expensive.
Uncle Sam is not the only culprit. Writes Pacini: This
year’s “late date is driven by continued government spending on
all levels and a further increase in the regulatory burden which,
taken in combination with a struggling economy, have made the
cost of government equal to 63.41 percent of national income.”
There is more than enough blame to go around.
Still, the federal government, as always, accounts for the
bulk of the cost of government. Explains Pacini, “The average
American worker will have to labor 104 days just to pay for
federal spending, which consumes 28.6 percent of national
income.” The good news, such as it is, is that last year federal
spending required 108 days of toil. But we have regained only
four days of the 18 day jump from 2008 to 2009. A year after
the tsunami of bailouts, stimuli packages, and more, federal
spending remains dramatically higher than the historic average.
Uncle Sam’s outlays may continue to recede in the future, but
probably only slowly, leaving federal outlays at a permanently
higher level. At least, unless there is a serious political
revolution in Washington.
Thank goodness state and local governments cannot deficit
spend. Obviously, balanced budget requirements do not prevent
determinedly irresponsible politicians from wrecking their
states’ finances — just look at California, America’s version of
Greece. Nevertheless, there is a limit to the amount of budgetary
legerdemain possible even for the most foolish state
officials.
Even so, states and localities account for the next big
block of the cost of government. Notes Pacini: “Despite a
declining economy, state and local spending has increased since
last year: in 2010 the average American has to work 52 days just
to pay for state and local government expenditures.” That’s an
increase of four days over last year — wiping out the small drop
in federal spending. Indeed, over the last decade state and local
outlays have jumped 22 percent compared to national
income.
Regulation accounts for another big increase, landing at 74
days, up seven from 2009. Explains Pacini: “This year, regulation
is estimated to consume 20.5 percent of national income which,
compared to 16.1 percent in 1999, is a drastic increase.” Again,
the Feds come out at number one. Washington’s rules consume 48
days of our labor, almost as much as total state and local
spending. State and local regulations come in at 26 days.
Of course, these rules theoretically are promulgated for
our good and are supposed to generate greater benefits than
costs. But that is rarely the case in practice. Much economic
regulation is a form of looting, simply a bit better disguised
than direct government subsidies. Lobbying is rarely more intense
than when companies push legal requirements to disadvantage or
even disable their competitors and mulct the public in the name
of the public interest.
Many other controls, such as the incoming flood of health
care rules, are meant to short circuit consumer choice and allow
our betters to engage in social engineering. Thus, there are
beneficiaries of health care “reform,” but few among the general
public.
Elsewhere obnoxious paternalism lives. People unable to
govern themselves feel an irresistible impulse to seize control
of the state to govern others. Every day the nanny state grows
more intrusive and obnoxious. Even when regulations really do
promote some laudable health or safety end, they often are
unnecessarily rigid, inefficient, and costly.
AUGUST 19 IS MERELY the national average. The news is worse
in some states.
At the bottom is Connecticut, always Connecticut. Residents
there won’t stop paying for government until September 17. That’s
up ten days over 2009. New Jersey is next. People there have to
work until September 14. COGD was “only” September 6 last year.
Next comes New York, where residents have to work until September
10. That’s a ten-day increase. Maryland’s population also suffers
from the “September distinction,” being stuck paying for their
public overlords until September 4. Last year the state’s COGD
was August 21. At least the remaining wastrel states stop
charging their citizens for government in August.
Of course, when averages are involved, some parties do
better than average. In this case, Alaskans finished paying for
government on July 28. Still, that’s up 17 days from
last year. Louisiana residents share July 28 as COGD, having
jumped ten days from 2009. Mississippians come in at
July 31, almost two weeks later than last year. Next
come South Dakota, West Virginia, New Mexico, and Tennessee,
which finish out the first week of August.
It is ridiculous when working seven months for government
appears to be a good deal. But such are the times in which we
live. If the folks in Washington had their way, we would labor
all year for government, with an occasional pittance doled back
by our virtuous rulers to people for use on their own selfish,
greedy pursuits.
Ken (Old Texican)| 8.19.10 @ 7:39AM
Doug, thanks.
How did Texas come in using your figures?
Maddox| 8.19.10 @ 8:05AM
Government has won unless we do something.
The choices are few.
Petronius| 8.19.10 @ 9:46AM
People do not care how heavily their wallets and purses are taxed so long as their minds are not.
frank| 8.19.10 @ 5:05PM
the people you speak think their wallets are bigger than they really are...and for the most part are too stupid to figure out how much they really pay in taxes, i.e. effective tax rate vs. how much they think they pay.
Conan the Contrarian| 8.19.10 @ 10:46AM
It seems to me that the Bush-Clinton-Bush era is the problem, especially Bush 43. Shame on Congressional Republicans for shilling for GWB. What a disaster he was. And, no, I don't miss him yet. Bandow is right. Bush 43 gave the Dems a platform to shoot the moon. If we get a GOP president in 2012, he won't do diddley squat to help us. He will wring his hands in fear of being called mean, racist, etc., if he should try to cut the budget. I have no faith in the future. We are doomed. Maranatha.
Clinton nee Publius | 8.19.10 @ 11:36AM
In the 16th century, Europe was a feudal society. The workers of the day were serfs who were tied to the land they worked. They had a plot that was theirs that they farmed, but their feudal lord got a third of their economic output and the serf was bound to work the lord's lands for free one day a week and harvest the lord's crops.
So if the serf had to give one day a week, that's 52 days a year for the lord's fields.
If you add to this the planting and harvesting this adds another two weeks, less the days - so another 12 days.
This means the serf gave 64 days labor to the lord - his state.
The serf also gave a third of his output to the lord and that means 121 days worth of labor also went to the lord.
This means the serf's "total tax" was 185 days of his labor output per year was going to the state.
Feudalism was ended because it was unfair and exploitative in nature. The economic rights were all with the landed gentry (their ruling class) and the workers were shafted with supporting the gentry (like we do today).
Today we spend 231 days paying our due to government and the serfs from the 16th century had a better deal.
That is liberalism people.
frank| 8.19.10 @ 5:08PM
95% of all american households earn less than $100,000/yr and 70% of all american households earn less than $70,000 per year. if you do the math, the 231 days is grossly overstated.
Tony in Central PA| 8.22.10 @ 9:14PM
In the words of Friedrich Hayek, " Serf's up ! ".
Peronius| 8.19.10 @ 8:28PM
The issue here is not just income taxes. Add to it sales, excise, property, use, utility, imputed intangible investment taxes, licenses, and permits.
And after government at all levels takes that money that we earned it returns to us nothing but insults and abuse.
Sam| 8.20.10 @ 12:31AM
The greater problem are the American people who believe in this guy and believe that he is just another politician. He is not! Americans have got to get their heads out of the "good life" syndrome and get to work filling their heads with American history, government, and the Christian ethic and morals that made this country great.
Appleby| 8.20.10 @ 3:27AM
As we say in Kanukistan, ITS ALL ABOUT THE GOODIES. As long as more than half the hoi polloi believes it is getting something for nothing -- that it can have everything it wants right now and somebody else will be forced to pay, the driverless bus will continue on its trip over the cliff with partying proles on board. Come up and spend some time in Kanukistan, most particularly in Ontario, and you will see the shape of the future.
Joanna | 6.6.11 @ 4:42AM
What an interesting article- I hope to read more like this, thanks!UTI Treatment