Our deficit is much higher than is reported, according to James Payne. He says that government spending programs actually cost the economy $116 for every $100 taxed and spent. Here is part of the article. I hope you take time to read the whole thing, it's pretty interesting, and he makes a compelling case.
We are now in a position to make a comprehensive estimate of the overhead cost of government spending programs. On the tax side there is a 65 percent waste, and on the disbursement side a 51 percent waste, for a total of 116 percent. The interpretation of this figure, then, is that when government spends $100, the country winds up being $116 poorer than it would have been had that taxing and spending not occurred.
To calculate how much this waste costs the country overall, we need to apply it to government spending at all levels. From this total figure I have subtracted spending for core government functions—defense, foreign policy, courts, police—on the grounds that only government can provide these services. These programs may involve huge amounts of waste, but abandoning them isn’t considered an option. All other government services— education, scientific research, pensions, health care, charity, arts, roads—can be and are provided through voluntary, free-market systems, so a realistic and less wasteful way of providing the activity is available.
Total non-core spending for federal, state, and local governments combined was $4.9 trillion in 2009–10. Applying the 116 percent factor to this number gives us a waste figure of $5.7 trillion. That is the yearly economic loss the country suffers owing to its decision to supply consumer goods and services through government.
Translated to the individual level, this waste amounts to $18,000 per person, or $72,000 for a family of four. Next time a politician urges a government spending program to ease burdens on citizens, keep this figure in mind. Think what American families would be able to afford if government stopped trying to make things affordable.
Read more:
http://www.fee.org/the_freeman/detai...#ixzz2EDdNWISW
The Unnoticed Deficit That Makes Us $6 Trillion Poorer
