A MERE 3%:

Busting the budget myths (Robert J. Samuelson, November 6, 2011, Washington Post)

Since 1971, federal spending has averaged 21 percent of national income (gross domestic product). Even with aggressive cuts, spending may never again fall this low. The reason: the surge in retirees. Meanwhile, taxes averaged 18 percent of GDP over those years, leaving average annual deficits of 3 percent. The take-away for both liberals and conservatives is repugnant: They need to identify the most justifiable spending cuts -- lots of them -- and the least damaging tax increases, which will still be sizable.

They need to come clean with reality. For years, they've exuded self-serving platitudes. Conservatives should acknowledge that Big Government is a permanent part of the social fabric and that much of what it does is popular. It needs to be financed. Liberals should concede that Big Government can become so big that its crushing taxes weaken the middle class and economic growth. Government then promotes conflict and degrades social justice.

The supercommittee cannot solve America's budget problems with one sweeping plan. It cannot remedy runaway health costs or streamline the complex income tax. These large tasks will be left to the next president and Congress. But it can elevate popular understanding by proposing a plan justified by a vision of government's collective responsibilities and the public's reciprocal obligations.

Entitlement and tax reform should be done for their own sake, but just getting defense/security spending back to its historic norms balances the budget.

Posted by oj at November 7, 2011 8:41 AM
Tweet   

Follow @brothersjudd