Monday, March 10, 2025
Cuts
Trump has told cabinet heads that they are in charge and Musk will only make suggestions but will this work. In private business, managers are always trying to cut cost but in government agencies, managers are always trying to increase their power and influence and thus government just grows.
According to available data, in 1950, the US government spending as a percentage of GDP was around 15.3%, with a gradual increase over the decades, currently hovering around 36.7% as of 2022 based on IMF figures.
In private business managers brag about reducing cost but in government agencies it is common for groups to make sure they spend all of their allocation, so they can get at least that much in next years budget. In private companies there is a limited amount of cash but in government they can print all they need.
If all government agencies were held to increasing their budgets to one-half percent less than the inflation rate, the size of government would decrease gradually much like it has risen gradually. Government cannot do this on a voluntary basis but must be forced by the citizens. Will the citizens be willing to cut some benefits? Probably not and the press will point out every cut.
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