The Massive Increase in the Size of the US Government and Taxation Levels Since 1940
Executive Summary
- The US Treasury creates money by issuing debt or a government bond, not directly issuing money itself.
Introduction
The government has massively increased in size since the founding of the country and the period when the country was a colony of the UK.
This is explained in the following graphic.
Look at the rise in taxes.
Important Points from the Graph
- 1940 was the massive inflection point.
- So before 1940 in particular taxes were much much lower.
- Another inflection point is 1916.
- And before 1916 most of the taxes were excise taxes and tariffs.
- So basically, no income tax and no payroll tax.
- So from 1792 to 1912, and particularly until 1940, the US followed the original design of the founders.
- Then in 1940 everything changed.
- The war spending and influence over the US economy by the government never ended.
- The colonial period, from the late 1600s to 1776, had very similar low taxes.
- This is another reason to oppose WW2 — it created a permanent change in the size of government. WW2 was a massive power grab on the part of the US government that reduced the freedom of the country, and reduced is aggressively and what appears to be permanently.
- This means that FDR should be considered oppositional to the founders.
- FDA is therefore anti-American and more like a European prime minister.
Other Implications
If we want a Dept of Education, a DHHS with a $1.7 billion dollar budget, an FDA that works for pharma companies to help ensure their profits and restrict competition, and a giant Pentagon, the founders were wrong. Also, by having all this government control, we are promoting more people of low competence to reproduce more children of low intelligence and low competence because if you are black or Hispanic, the government is there to guarantee your ability to reproduce.