Smith Faculty Opinion Article

John Haslem By Dr. John A. Haslem, Professor Emeritus of Finance
E-MAIL WEB SITE

The 30 Seconds Outlook
May 1, 2010

“Think governments of countries with genuine ‘welfare states’ spend more per capita than the United States? Think again.”
- John Lott, FoxNews.com. April 8, 2010

There is a real and valid concern that Obama is actively building a far left progressive government that promises additional budget deficits growing at rates too high to be repaid through economic growth. This “turning point” is of huge consequences for our country, but nonetheless he desires to grow government stocked with millions more union employees. This ongoing movement will place even greater tax burdens on individual taxpayers and cripple the ability of innovative and productive companies to survive, no less grow.

But, the fact is that our government is already bloated even beyond those of most European socialist governments. If Greece’s financial crisis results in failure, it could signal more of the same around the world. It is crucial that Greece seriously downsize its bloated government, while at the same time its public employees strike and riot for more of what cannot be provided.

The Federal government now spends more per capita than 95% of the countries around the world. This spending works out to $17,400 per person and almost $70,000 for a family of four. Sweden, the “poster child for welfare” spends only 8.6% more than the U.S. per capita. France spends less than 2% more than the U.S. per capita. And, Finland, Germany, Italy, and the U.K. spend much less per capita than the U.S.

John Lott asks the telling question that taxpayers (50%) should consider seriously: “Think about how much more freedom the average family of four would have if they, not the government, got to determine how that $70,000 was spent?”

The implication of our government spending per capita is that it was already out of control before Obama entered office and began his own unsustainable spending spree. What do you think government spending and the deficit will be like when he leaves office? Is there another “Greece” looming in our “rear view mirror”?  

John A. Haslem