Monday, September 7, 2009

Government Spending is Climbing to War-Time Levels

During World War Two, government spending as a percentage of GDP was about 45%. Understandably. It is over 20% right now, with the Obama administration on a spending tear. And that percentage is rapidly on the way up, headed much higher, as bailouts and additional programs are proposed.

So, you see where the government-centrist planners envision their left-leaning philosophical opening in this country? And what it means for business? Particularly those who cannot compete with the big company competition?

Remember: Government spending displaces funds available for the private sector. When that occurs, the smaller firms seeking funds are less likely to get them. Yet, they are the entities who mainly create jobs.

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