Federal Spending and Deficits

In the last Cogport post, we reviewed the original intent of the U.S. Constitution that framed a concept of limited Federal Government.  Most powers were reserved to the States.

Over the last 100 years, Powers have been assumed by the Federal Government that were not in the vision of the Founding Fathers.

The Result: Excessive Spending and Deficits have led to Massive National Debt.  A practice that cannot be continued for the future prosperity of the United States.

Here is a Chart showing the growth in Federal Spending and Deficits.

Spending in Constant Dollars grew from $ 114 Billion in 1920 to $6.1 Trillion in 2023. 

Federal Spending is over 50 Times higher now than in 1920.

That reflects the magnitude of growth in the Federal Government beyond the original intent of the Constitution. 

Note the explosion of Deficit reached in 2023.

Here is another comparison on the growth in spending:

Federal Spending as a Percent  of Gross Domestic Product (GDP) was 6% in 1940.

Federal Spending as a Percent  of Gross Domestic Product (GDP) was 22% in 2023.

By this measure, the Federal Government grew almost 4 times as fast as the general economy.

Here is a chart to show how the National Debt has increased, especially in the last 20 years.

As of November 14, 2024, the U.S. national debt stands at approximately $35.97 trillion.

The National Debt has been increasing at a rapid pace, with reports indicating that it has been rising by about $1 trillion every 100 days.

This surge is attributed to ongoing government spending and interest obligations.

This course of spending is unsustainable and will end in harm to the economy and the U.S. standard of living.  The most affected will be Low and Middle Income families.

The country is driving itself towards a cliff, and we need to make a turn.

SUMMARY

This Report provides background information as to why Significant Changes are needed in Federal Powers and Spending.

Cogport will explore these issues further in future Reports.

David Hollaender                                             November 16, 2024

Cogport.com