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It has become clear as a result of the debt ceiling debate that there is no longer a political constituency for small government. While there is much hand-wringing about the deficit, nobody wants to cut any of the big-ticket items, Social Security, i.e., Medicare/Medicaid, Defense and the VA, that account for most of the Federal budget.
It is also clear that government’s fiscal future is unsustainable because the current level of tax collections (about 26.7% of GDP) is insufficient to fund these programs and to provide other government services that nearly all of us want and need.1
We cannot continue to have nearly the lowest taxes in the OECD while maintaining the most expensive military and the most costly and inefficient medical care system (or non-system) and expect to balance the budget by cutting welfare and food stamps.
Government can do much for us but it is not a free lunch. If we want the government to serve us well, we need to step up and pay for it.
1 On May 8, 2023, the comptroller general of the United States concluded that “the Federal government faces an unsustainable long-term fiscal future.” This should surprise no one.
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