History of Federal Spending

Drawn into the stream
Of undefined illusion
Those diamond dreams
They can't disguise the truth
--Level 42

These pages have shown variations of this chart before. For the majority of the nation's history, the United States operated with federal spending of 3% of GDP or less. Today, federal spending exceeds 20% of GDP. In fact, federal spending is at record non-war year highs.

Policies are in motion that seek to institutionalize current levels of spending. The question that must be asked is why should current levels of spending be regarded as more valid than those in place for the first 100+ years of the country's existence?

It should also be noted that, for those claiming that we currently operate under a 'free market capitalism' system or that capitalism is becoming more 'unfettered' than in the past, this chart is one piece of evidence that invalidates such claims. The more resources that government controls, the less free the markets.

The chart reflects the trend toward less freedom in markets, not more.