Our Global Financial Situation

[Alph]

I've seen several threads on this subject. But they all seem to be derailed by politics. Specifically, American politics. But let's see where the consensus stands without politics, piece by piece, on our financial existence.

Let's start with the most basic question. Without reference to what it is spent on, and understanding that most governments bring in 15-18% of GDP regardless of their tax codes, what percentage of GDP should a hypothetical government spend?

[Colonel Sun]

I suggest that it should be less than 50%.

[Caskhades]

[Mr. Perfect]

[Alph]

[Demon of Undoing]

My old shop teacher , Mr Conway , always taught us to use the right tool for the job. I would argue that national priorities for what is the responsibility of the government and what is the responsibility of the private sector ought to override any abstract figure. The US could get by with considerably less spending.

FFS, even God only wants a tenth .

[Captain Murphy]

The question of what role government plays in society is fundamentally linked to societal goals and values. I think the question should not be "what % of GDP should government spend", because that is arbitrary and meaningless, but rather "what role should government play in society?" This is linked to a broader question: "how do we want society to be organized?"

Different societies have different needs, different values, and could very well have to spend very different sums to achieve the same outcomes. It looks like most of the places that I have enjoyed and would consider suitable for living, raising a family, and retiring, spend in excess of 20% (sometimes 50%) of GDP on government, with the exception of Hong Kong -- but then again, I don't know if I'd care to live there if I were married and past my prime.

[Mr. Perfect]

[Caskhades]

Sensei, the US needs to cut its spending by 10%.
That, and if the French aren't lying about their debt (they would never do that, would they?), those frog SOEs must be bringing in ridiculous sweet dough.

I'd give a more detailed answer, Sensei, but I confess I'm unable to focus on the answer, searching as I am for one way tickets to Brazil.

[Mr. Perfect]

[Captain Murphy]

[Colonel Sun]

[Caskhades]

Col, the WB gives 22% for the US, but considerably less for most of the high end countries - I too am curious about the source.

I was under the impression that the US Govt at all levels spends roughly 35% of GDP.

[Alph]

[cincinnatus]

Seeing as how the existence of government is to provide for the commons that allow society to function, the percentage should be well less than 50% (I'd argue even less than a third MAX).

I am however, reminded of an unattributed quote: "the bureaucracy exists for the benefit of the bureaucracy." Is it simply a case that no matter how low you set the peg, it will rise, and after a while, no longer parallel to a rising GDP?

[Alph]

[Captain Murphy]

National defense would be a good starting point. Conventional wisdom says our vast foreign military presence somehow pays for itself in trade, but this has never to my knowledge been proven (and any "proof" would be too speculative to trust). Start by chopping off 25%. Then, restore Clinton era income taxes.

[Sparky]

[cincinnatus]

[Hans Bulvai]

Welcome cincinnatus .

[Alph]

[Tinker]

[Captain Murphy]