One can learn quite a bit just from looking at federal spending over time. The history of our relationship with our government can almost be summarized in a graph. Data source: White House Office of Management and Budget, Table 1.2 Here is my take on that graph, using the bits of history that go along with it. Lesson 1. We can survive as a country with a lot less federal spending. The above chart shows that federal spending was 3.4% of GDP in 1930, and then shot up rather quickly. What was spending before 1930 (before that OMB table kicks in)? Dean Kalahar recently provided a summary of pre-1930 spending. Research shows that from the founding of our nation, 1787-1849 (63 years) federal spending averaged 1.7% of GDP. For the next 51 years, 1850-1900 (including fighting the Civil War) spending averaged only 3.1%. From 1901 till 1930 (including fighting WWI) it never reached 8%, and averaged approximately 3.2%. For more than the first 140 years of the country's existence,....
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