The Obama Hat Trick: Three Hockey Sticks

While the solution to cutting spending is going to be tough, our spending problem is not hard to understand.  Chart I shows federal spending as a percent of GDP from the Eisenhower administration through estimated numbers for fiscal 2012, which ended in September.  The Eisenhower administration is a good starting point for post-war budgets because it is the first period of budgetary normality following World War II, demobilization, and the Korean War.  Spending as a percent of GDP gives a crisp number which is comparable over long periods of time. Average spending for the federal budget as a percent of GDP from Eisenhower through Bush was 20.0%.  In its first year, the Obama administration blew out the budget to 25% of GDP.  That was when the Democrats controlled both Houses of Congress.  In order to lock in the 2009 level of spending, which included the allegedly temporary stimulus, the Senate has not passed a budget since April 2009, even though the...(Read Full Article)